Goldbach Guaranteed Lifetime Income (GLI) is a retirement income product designed to ensure that participants can do four things:

1. Withdraw an attractive and contractually-agreed income from their savings, which is guaranteed to last for the rest of their life.

2. Have the freedom to spend their savings beyond this income if they desire. Spending beyond the contractually-agreed level of income will cause the contractually-agreed income to be reduced in proportion to the reduction in their remaining assets.

3. Pass on any remaining savings to their beneficiaries when they die.

4. Keep their funds in the Pension Master Trust that they have used and are familiar with.

Questions ...

How is this different from a life annuity?

You can also invest in a life annuity, which is a different product from our Guaranteed Lifetime Income. With a life annuity your funds are invested in an insurance company, which pays you and potentially your spouse a fixed amount every month until your death. There are usually no funds to pass on to your children, and you cannot decide that you need to take a lump sum out of the annuity at some point.

With the GLI you also are guaranteed the income for life, and you may include your spouse in the same way as a life annuity. However the GLI has two additional benefits.

It is likely that you will not have exhausted your funds by the time of your death. If markets perform well, you may have more funds than you do now. In this case the remaining balance can go to your children or other beneficiaries as set out in your will.

From time to time some people decide that they would like to take a lump sum out of their retirement savings. With a life annuity, this is not usually possible. With the GLI you may take any amount out, up to the entire balance. After withdrawing a lump sum your future income is smaller in proportion to the amount of your balance that you withdrew.

What if my investments perform badly?

If your investments in the GLI account perform poorly and reduce to zero at some point, the GLI income does not stop. It continues at the same amount as before until your death.

What if I need extra money for some reason?

If you need extra income from this GLI account, you may take an Excess Withdrawal. Excess Withdrawals will reduce the amount of your future income. So an Excess Withdrawal of 10% of the remaining balance will reduce your future monthly income by 10%.

Goldbach
Guaranteed Lifetime Income