Living annuity clients don’t need to become a burden on their children
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.
Best opportunity to buy a with-profit life annuity this decade
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.
Now is the time to lock in market gains
Recent market conditions have created a combination of factors that could see your client lock in significant gains if they buy a life annuity now. And given ongoing uncertainties resulting from the Covid-19 pandemic, this is also a good time for clients to secure an income that will be guaranteed for life, regardless of fluctuations in investment markets.
Benchmark blend: How much should your client blend?
A blended annuity allows annuitants to structure a suitable combination of guaranteed and flexible income. Ideally, the guaranteed portion of the blended annuity should give a retiree sufficient monthly income to cover the basic cost of living.
Just SA created a framework to help you calculate – for an individual client – how much to allocate to the life annuity component based on their profile, so that the guaranteed portion of their retirement income will indeed be enough to cover their essential expenses.