15 May 2020
Timing provides a unique opportunity for retirees directly affected by the market volatility
Retirees can take advantage of an unprecedented scenario, especially if they are looking to temporarily increase their living annuity drawdown as allowed by National Treasury.
A combination of factors caused long-term interest rates on bonds to spike, and higher long-term interest rates is good news for pensioners because annuity rates improved significantly. This means you can restore income sustainability to pre-crash levels or even better.
And a blended living annuity, with the ability to partially annuitise inside the living annuity, enables you to recommend an optimal balance between sustainable income for life and capital legacy in a single product.