WIXLIB

EMPLOYEE BENEFITSRetirement funds and group risk solutions for your employees

DISCOVERY FOR BUSINESS01

EMPLOYEE BENEFITSThe global retirementsavings gap is expected togrow to 400 trillion in 20501.The three main reasons whypeople don’t have enough inretirement are:Longer livesPeople entering theworkforce today will liveon average 12 years longerthan people retiring today.Low contributionsOther financial needs,like housing andeducation, get priorityover retirement saving.Cashing out too soon75% of employees takesome or all of theirretirement savings whenleaving jobs.02

DISCOVERY FOR BUSINESSThe challenges employees face about their financial future can be addressed through ourshared-value model. This model rewards healthy choices and encourages behaviours that willensure a more comfortable retirement.EmployeeImproved retirement provision through better choices and increased savingsImproesviohabeEmployeeiivntdvenceImproved health, lower absenteeism, better productivityur ehaviour changeB Dynamic pricing Risk savings Investment boostsSocietyInsurerHealthier and wealthier societyReduced healthcare burdenReduced reliance on State Old AgePension and family03Lower claimsI n s u r e r v a lu e Larger assets invested for longerGenerate surplus profits

EMPLOYEE BENEFITSContribute3%moreEncouraging theright savingsbehaviours canhave a dramaticeffect in helpingto close theretirementsavings gap. years4longerSave Get70%moreat retirementFor example, an employee contributes10% of their income a year. They only startto preserve from age 30. If they increasetheir contribution by 3%, to a total of 13%,and they start preserving their retirementsavings four years earlier, their fund value atretirement would be 70% more.04

DISCOVERY FOR BUSINESSEMPLOYEE BENEFITSIntroducingEmployee BenefitsTailored solutionsState-of-the-art administrationfor unique needsand servicingOur solutions can be tailored tothe unique needs of your business.You choose between a standardor customised package andemployees make their own choicesabout retirement contributions,investment funds and risk benefits.We offer dedicated support forinstallations and transfers, andsimple onboarding processes.Comprehensiveinvestment offeringOur range of investment optionsallows you to offer employees a fullrange of Discovery and externalinvestment choices that include: Our Target Retirement DateFunds that are tailored specificallyfor retirement. Our Balanced Fund and DynamicAsset Optimiser Fund of Fundsrange of funds that takes intoaccount employees’ risk appetites. A wider investment selection ifemployees prefer less guidancefor their investment choices.RetirementFundsGroupRiskTailored pensionComprehensive riskCompetitive feesOur fees are among the lowest inthe market and we offer discountedfees to lower income earners.Digital employee engagementthat empowers choicesWe empower employees to makesmarter financial decisions byallowing them to engage with usdigitally, and we reward themwhen they complete their firstonline journey.and providentcover to protect yourfund solutions thatemployees and theirencourage yourfamilies against financialemployees to reachdifficulty in the eventtheir retirement goalsof death, disability andwith unique rewards,severe illness, whilebenefits and digitalrewarding them forengagement.getting healthier.Fastest-growing group insurerStable pricingWe are the fastest growing groupinsurer2, with a 96% retentionrate. We also give cover to 20% ofcompanies listed on the FTSE/JSETop 40 Index.We use advanced riskmanagement pricing techniquesto offer premiums that aresustainable over the long term.Dynamic, personalised pricingComprehensive risk coverWe offer a comprehensive range ofrisk cover benefits that includes lifecover, local and international coverfor educating your employees’children, severe illness cover,lump-sum and monthly disabilityprotection, and funeral cover.Increased coverMarket-leadingwellness programmeShared-value retirement modelWe show employees how they aretracking towards meeting theirretirement goals and provide themwith solutions and boosts to theirretirement savings to help themachieve those goals.By aligning with the medicalschemes administered byDiscovery Health as well as Vitality,we are able to reward healthieremployees with paybacks thatcan increase their savings forretirement.Your employees can getaccess to Vitality, one of themost sophisticated wellnessprogrammes in the world, withbenefits for getting healthier.By encouraging your employeesand their families to live healthierlives, we improve their quality oflife and productivity, and rewardthem through increased cover.Retirement Funds refer to the Discovery Life Pension Umbrella Fund and Discovery Life Provident Umbrella Fund0506

DISCOVERY FOR BUSINESSRetirementFundsRETIREMENT FUNDSPowerful behavioura l incentivesOur retirement solutions encourageyour employees to make financialdecisions that can lead to a morecomfortable retirement.0708

DISCOVERY FOR BUSINESSBoost toasset transfersup to15%boostto assetstransferred inWe boost the retirement savings employeestransfer into the Fund to encourage them tostay invested and consolidate their savingswhen they join or leave the Fund.The boost is held outside the Fund and grows at thesame rate as the returns in the Fund. The boost will beadded to the fund value at retirement. The size of theboost depends on how long the employee has untilthey retire, as shown in the table.YEARS UNTIL RETIREMENTBOOST TO RETIREMENTSAVINGS TRANSFERRED10 to 15 years5%15 to 20 years7.5%20 to 25 years10%25 to 30 years12.5%30 or more years15%All boosts are offered through the insurer, Discovery Life Limited and only applies to investments in qualifying Discovery Funds if helduntil the retirement date. Early retirement, withdrawals or switches out of qualifying funds will impact the boosts. Product rules, termsand conditions apply.09

RETIREMENT FUNDSBoost tocontributionsWe boost the contributions, including additionalvoluntary contributions, that employees make to theFund each month. As employees may be living longer,these boosts that reward healthy living and safe drivingwill supplement their retirement savings. The boost isrelated to the employees engagement in our variousup to15%boostVitality programmes and meeting their Active Rewardsgoals. They will also receive a launch offer boost of 6%.STATUSESIn addition, all employeescan access the Vitality Moveprogramme for free, and achieveup to 2% boosts for healthy livingwith Vitality Health Check outcomes.All boosts are offered through the insurer,Discovery Life Limited and only applies toinvestments in qualifying Discovery Fundsif held until the retirement date. Earlyretirement, withdrawals or switches outof qualifying funds will impact the boosts.Product rules, terms and conditions apply.BlueBronzeSilverGoldDiamondBoost forhealthy living1.0%1.5%2.0%3.0%4.0%Boost fordriving safely0.5%0.75%1.0%1.5%2.0% ACTIVE REWARDS (GOALS MET)VitalityEach boost has a maximum thatdepends on the term to normalretirement age, and no boost isallocated in the last five years. Theboost is held outside the Fundand grows at the same rate as thereturns in the Fund.Vitalityto everycontribution1 week2 weeks3 weeks4 weeksBoost forhealthy living-1.0%1.5%2.0%Boost fordriving safely-0.5%0.75%1.0% LAUNCH OFFEREmployees can get a boost of 6% until 31 December 2018.10

DISCOVERY FOR BUSINESSBoost topaybacks from group riskRetirementFundsGroupRiskup toPension andprovident fund30%Risk benefitsof the value of group riskpremiums when paybacksare reinvestedOur paybacks from risk premiums, which can be up to 15%, reward employees forimproving their health. To help employees accumulate the extra retirement savings forliving longer, we double the payback amount that they reinvest into the Fund.The boost is held outside the fund and grows at the same rate as the returns in the Fund, and will be addedto the employees’ investment value at retirement.All boosts are offered through the insurer, Discovery Life Limited and only applies to investments in qualifying Discovery Funds if helduntil the retirement date. Early retirement, withdrawals or switches out of qualifying funds will impact the boosts. Product rules, termsand conditions apply.11

RETIREMENT FUNDSBoost toincome in retirementup to50%boostto retirement incomeOur shared-value model extends into retirement evenafter employees have left their employer and retired.The Discovery Linked Retirement Income Plan givesyour employees the flexibility to manage their incomewithdrawals (drawdowns) according to their individualcircumstances, while giving an immediate income boostof up to 50% for responsible withdrawal levelsand healthy living.The boost is only paid for the first10 years. The increase depends onhow much of retirement income iswithdrawn, Vitality status and thepercentage invested in qualifyingDiscovery funds.Alternatively, employees canchoose the Discovery FixedRetirement Income Plan whichprovides peace of mind fromknowing exactly what their incomewill be in retirement for the restof their lives.VITALITY STATUSIncome(yearly annuity %)NoneBlue Bronze Silver Gold Diamond2.50% to 3.25%20%30%35%40%45%50%3.26% to 4.00%15%17,5%20%25%30%35%4.01% to 4.75%10%12,5%15%17,5%20%25%4.76% to 5.50%5%7,5%10%12,5%15%17,5%5.51% to 7.00%2,5%2,5%5%7,5%10%12,5%7.01% to 8.50%0%0%2,5%5%5%7,5%8.51% to 10.00%0%0%0%2,5%2,5%5%10.01% to 17.50%0%0%0%0%0%0%12

DISCOVERY FOR BUSINESSInvestment optionsfor you and youremployeesWe offer a wide range ofinvestment options thatcan be tailored to suit theneeds of your employees.You can also influencewhich options will beOur TargetRetirement DateFunds provide alifelong savingssolutionprofiled to your employees.They can choose between arange of funds that have beentailored for retirement savings,a risk-profiled range of Discoveryfunds, or a wider selectionof Discovery and externalinvestment choices if they don’tfind what they want on ourshortlist of funds.We dynamically adjust theinvestment strategy to continuallymeet employees’ needs in a singleinvestment portfolio.This means the employee doesn’thave to switch between funds to addressdifferent life stages. As the graph shows,there is a smooth transition from growthto income investing as opportunitiespresent themselves.The range includes seven TargetRetirement Date Funds, from 2020 to 2050,in five-year increments.13

RETIREMENT FUNDSThe graph below shows the asset class changes and dynamic asset allocation for an employee planning to retire in 2040.Proportion of investment100%Cash and short-termfixed interest80%60%Fixed interest40%Equity andproperty20%0%204020170102After retirement20600320 yearsbefore retirementAs the retirementdate approachesAfterretirementAllocation to equities is relativelyhigh so that the employee canbenefit from long-term growthpotential. Allocation to fixedincome investments, on the otherhand, is quite low because theyare considered lower-returninvestments relative to equityand property.The allocation to equitieswill decrease in favour oflower-risk, fixed-incomeinvestments.The asset managementteam continues to adjustthe fund’s risk profile intoretirement, to provideenough income.14