How a Life Annuity works
Deciding how to invest your retirement fund when you retire can be a daunting decision, but you can approach it with confidence if you know the basics of the available options. In South Africa, when you retire from a retirement fund such as a pension, provident, preservation fund or retirement annuity, you can invest all […]
The flexible option
The living annuity is attractive because it offers flexibility, but if that flexibility is used without the necessary care, it becomes a disadvantage. Many people choose the living annuity because they want to leave capital to their children at their death, and they don’t like that life annuities do not pay capital at death. But […]
Managing your living annuity.
Managing your income
Flexible
The living annuity focuses on income flexibility and investment choice with capital balance transferrable at death. This contrasts with the goal of the life annuity, which is a guaranteed income for life and the capital protector, which is guaranteed income for life, with original capital invested refunded at death. The focus on flexibility in the living annuity is a trade-off against the guaranteed income […]
Living annuity basics:
How a Living Annuity Works
When you retire from a retirement fund such as a pension, provident, preservation or retirement annuity, you can invest all or part of your money in a living annuity to get a regular income. You can adjust your living annuity income annually and choose how your money is invested.