The Group Chief Executive Officer of Old mutual Ghana, Tavona Biza has said that the company’s new insurance product “Obra Pa Retirement Salary” is the solution to the plight of pensioners in the country.
According to him, the lump sum from the tier two and three given to the pensioners is not sufficient to take care of the pensioners, and plunges them into hardship a few years after retiring, hence, makes life difficult for them.
For this reason, he said, Old Mutual has introduced the Obra Pa Retirement Salary to help retirees have a comfortable life and have peace of mind by providing them with a guaranteed income for life.
The Director of National Pensions Regulatory Authority (NPRA), Ernest Amarty Vondee, speaking at a stakeholder engagement in Accra, lauded the Obra Pa Retirement Salary as a positive product, as it will enable people to invest their lump sum of money into annuity product.
“Anything that enhances retirement income, I think is a positive thing. This is because there is so much demand on our financial resources when we go on retirement. Indeed, that’s the reason why the retirement reform was instituted, so that we don’t rely on just the social security scheme as the only source of retirement income,” he said.
The Head of Distribution of Old Mutual Ghana, Emma Ocansey, also in an interview with the B&FT, noted that the Obra Pa Retirement Salary is not introduced to compete with SSNIT but to augment it.
She added that Old Mutual has been in the market for over 175 years and has acquired a great experience, trust and the financial muscles to operate in the insurance industry.
The Obra Pa Retirement Salary product is an income annuity and customers will be paid regular income as long as they live. The package can be purchased with a minimum amount of twenty thousand Ghana Cedis.
Another benefit of the Obra Pa Retirement Salary scheme is the guaranteed term, whereby, a minimum period can be selected by the customer when the annuity is purchased for which the income is guaranteed to be paid, even if the customer passes on.
Also, a customer can add second life to the annuity, which means that the regular income will be paid until both the customer and the second life are no more.
To become an Obra Pa retirement salary beneficiary, one has to be 50 years and above and invest a minimum lumpsum of GH¢20,000 upfront. In addition to the monthly salaries for individual policyholders, couples can also enjoy Joint Spousal Benefits when they take the policy together. There is also a funeral cover for all policyholders.
