COMBINATIONS ILLUSTRATIONS

Rocco Car | Business Development Manager | Glacier by Sanlam

TYPICAL CL IENT

Retires too

soon/forced to retire

Still cares

for parents

and/or children

Have not

saved

enough

In his or her 60s

TYPICAL NEEDS

1 2 3 4 5

Income and capital need to grow with

inflation

Inheritance for children is important

I want wonderful

growth with no risk

Capital and income need

to be guaranteed

I need a bigger-than-

advisedincome

INCOME STREAM MANAGEMENTBECOMES PARAMOUNT

We need to see the issue from a new perspective…

Combining income

products can bridge the

gap…

and income stream management

between needs

Longevity leads to poverty

Inheritance and

flexibility

L IV ING ANNUITY ONLY

Client 63, spouse 60

6% income (R20 000pm), escalating by 5%

Inheritance andflexibility (can change funds and income)

Guaranteed Living Annuity 1

Point of no return

GUARANTEED L IFE ANNUITY 5% ESCALATION

Guaranteed joint life income of R22 019 (6.6%)

Annual guaranteed escalation of 5%

No inheritance after death of longest living spouse

10-year guaranteed term

No inheritance or income flexibility

Income stability

Guaranteed Living Annuity 1

GUARANTEED L IFE ANNUITY: NO ESCALATION

Guaranteed joint life income of R34 521 (10.4%)

No income escalation, no inheritance after death of longest living spouse

Guaranteed Living Annuity 1

High initial income, but no escalation or inheritance

COMPARING THESE OPT IONS

Only living annuity offers inheritance of fund value and income flexibility

Guarantees protect income

High initial income, but no escalation or inheritance

Average life expectancy

Guaranteed Living Annuity 2 Living Annuity 1 Guaranteed Living Annuity 1

FGLA (FLEXI GUARANTEE L IFE ANNUITY)

Existing living annuities

35% to guarantee

Increase trailer fee on living annuity (protect book)

Living Annuity 2 Guaranteed Living Annuity 1 Living Annuity 1

Combination as solution

L IV ING ANNUITY (40%) , JOINT L IFE 5% ESCALATION GUARANTEE (30%) AND I LL I (30%) COMBINED

As you get older, a larger portion of income comes from guarantees

Managing future income streams becomes the focus

Combination as solution

Guaranteed Living Annuity 2 Living Annuity 2 Guaranteed Term (Combined)

Guaranteed Living Annuity 1 Living Annuity 1 Investment-linked Lifetime Income 1

W HAT ARE THE OPTIONS?

Living Annuity

Flexibility on funds and income

Longevity risk

Life annuity (plan 2 or 3)

Income guaranteed

No flexibility or inheritance

Income with

capital preservation (plan 29)

Capital (amount can be selected) and income guaranteed

Cost of life premium and inflation

With-profit

annuity (ILLI)

Units guaranteed

Market exposure and flexibility

1 2 3 4

THANK YOU

The information in this presentation is provided for information purposes only and should not be construed as the rendering of advice to clients. Although we have taken reasonable steps to ensure the accuracy of the information, neither Sanlam nor any of its subsidiaries accept any liability whatsoever for any direct, indirect or consequential loss arising from the use of, or reliance in any manner on the information provided in this document.

Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5Tyger Valley 7536 | Email client.services@glacier.co.za | Tel +27 21 917 9002 / 0860 452 364Fax +27 21 947 9210 | Web www.glacier.co.za | Twitter @GlacierBySanlam | Reg No1999/025360/07 | Licensed Discretionary Financial Services Provider. FSP 770 trading as Glacier Invest.

Sanlam Multi-Manager International (Pty) Ltd. | A member of the Sanlam Group | Private Bag X8Tyger Valley 7536 | Tel +27 21 950 2600 | Fax +27 21 950 2126 | Web www.smmi.comReg No 2002/030939/07 | Discretionary Financial Services Provider, acting as Juristic Representative under the Glacier Financial Solutions FSP 770.

G L AC I E R F I N AN C I A L SO L U T I O N S ( PT Y) LT D I S A L I C E N S E D F I N AN C I A L SERVI C E S PR O VI D E R