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.