Max Income

Bonus Declaration

Max Income Bonus Escalation Option
As a reminder, the Bonus Escalation Option is only available on the compulsory
Income for Life plan. The income increases each year with a bonus declared by Old
Mutual, based on the performance of an underlying investment portfolio.


New Bonus Declaration for 2011
The new bonus rate of 3% is applicable as from the beginning of April 2011 to
the end of March 2012. Clients who have Max Income plans with the Bonus
Declaration Option will receive an income increase of 3% on their annual increase
date during this period.
*Please note that the clients annual increase date must be between the beginning
of April 2011 and the end of March 2012 to qualify for the 3% bonus declared.
Why the Max Income for Life with Bonus Escalation
Option?
This option offers the best of both worlds by offering a combination of:
1. Guaranteed income for life which addresses living annuity drawbacks
2. Participation in market growth that addresses guaranteed annuity
drawbacks
Income increase annually by the bonus declared.
Once the bonus is declared, the income can never decrease.
Potential to grow real value of income.

Comparison between Bonus Escalation Option and
Inflation-linked Escalation Option
Bonus Escalation Inflation-linked
Income increases annually by the
bonus declared
Income changes annually with the
inflation rate
Only available on income from
retirement funds
Available on income from own
funds and retirement funds
Income can never decrease Backed by CPI-linked bonds
Backed by a balanced portfolio Immunised against inflation, no
chance of real growth
Participation in market, potential
upside, real growth possible
Income can decrease in a
deflationary environment



Past Bonus History
Historical bonuses for the past 7 years are shown in the table below:
Year CPI as at 31/12 the
previous year
Declared Bonus
(Increase in income)
2004 0.3% 3.0%
2005 3.4% 5.5%
2006 3.6% 9.0%
2007 5.8% 9.0%
2008 9.0% 8.5%
2009 9.5% 2.5%
2010 6.3% 2.5%
2011 3.5% 3.0%

Note: 2004 figures are based on Employee Benefits equivalent product. The balances of the
years figures are based on the Max Income bonus escalation option.