Living Annuity Plan: Overview

As an employer, the Living Annuity Plan gives flexibility to secure an income stream for an employee and their dependants but where the longevity and investment risk of the income stream is not transferred to the insurer. The longevity and investment risk can be retained by the employer, but is normally borne by the employee.

The Living Annuity Plan is a single premium retirement savings policy equal in value to an individual Annuity Fund for each annuitant which comprises of an individual portfolio of bonds, shares and bank deposits. Each Annuity Fund is managed by an Investment Manager who may be appointed by the client but who must be approved by Nordben.

The Plan has merit only when the employee is willing and able to take the inherent risks.

Nordben assist both employer and employee in managing longevity and investment during the term of the Plan to ensure that the agreed income stream can be afforded.