Adviser Newsnotes

Guaranteed life annuities are still offering good value for money, despite the recent reduction in annuity rates. The income a retiree can secure is what really matters. Starting income is determined by the combination of the market value of retirement savings and the annuity rate at any point in time, not the annuity rate alone. 

Just introduces JuLIA (JuLI Advance), a new with-profit annuity feature to address current market anomalies. JuLIA’s starting income will be much higher than a comparable with-profit annuity in exchange for participation in the six-year average investment returns (after asset management fees) in excess of 15% per annum.

South African life insurers are currently offering annuity rates at highs rarely seen over the past 20 years, which is good news for retirees looking to buy a guaranteed income for life with their retirement savings.

Life annuities have made quite a comeback in the 2020s. We believe there are three main reasons, and we explore these reasons in our latest Just In Adviser Newsnote.

Ensure that your clients have an income in retirement, which is guaranteed for life, so they do not risk becoming a financial burden on their dependants later in life. Life annuities are proving to be a suitable solution for this reason, and because they provide certainty and security.

It is a great opportunity to lock in income that is guaranteed for life to cover a pensioner’s essential expenses – to provide pensioners with peace of mind against the backdrop of global uncertainty caused by a combination of an unpredictable war in Europe, rising global inflation and interest rates.