Just provides a much-needed boost to retirement income in 2021

2021 Just Lifetime Income increases

The table below shows the range of 2021 Just Lifetime Income (JuLI) increases across the underlying investment portfolios. JuLI increases are the same for our standalone with-profit annuity or our lifetime income portfolio in the blended living annuity.

1. Increases vary based on the performance of the selected underlying investment portfolio
2. SA annual Consumer Price Inflation as at 31 October 2020.

Increase detail for each calibration and investment portfolio can be found in the corresponding increase note.

Just brings transparency to with-profit annuities

JuLI’s increase formula is transparent and explicit, meaning that the inputs are not at the discretion of the insurer. This transparency allows us to distinguish investment performance and Just’s value add of each year’s increase. This being:

• Investment performance: after deducting investment management fees and the guaranteed rate of interest used to determine the starting annuity income
• Just’s value add in the form of experience profits, less product management fees

Just adds value to clients through astute product management

Generally when a pensioner buys an annuity, they expect to earn some investment return and pay a fee in exchange for longevity insurance and product management.

However, over the last 5 years, the value Just has added to clients through its experience adjustments, outweighs the fees pensioners paid for longevity insurance and product management by around 8%.

This value is attributed to the focus on setting appropriate long-term mortality assumptions based on individual underwriting, sourcing the best matching investments in the market, trading astutely through significant market inflections and distributing surplus to pensioners as it is earned.

Once again, the result is a much-needed boost to pensioner increases in a period of relatively low investment returns, helping pensioners to beat inflation and preserve their purchasing power.

We offer relevant solutions to pensioners needing peace of mind and a better later life

In comparing retirement solutions, we believe it is important to focus on the added value after taking account of all fees and charges, which should be disclosed transparently.

We are proud of the track record we have achieved since inception despite very volatile markets and appreciate the value of collaboration across all our partnerships, to the benefit of pensioners.

The information contained in this newsnote is intended for financial advisers and is for information purposes only. It should not be regarded as advice as defined in the Financial Advisory and Intermediary Services Act 37 of 2002, or any form of advice in respect of the policy, retirement, tax, legal or other professional service whatsoever. You are encouraged to seek advice from an authorised financial adviser, or to independently decide that the financial product is appropriate for you based upon your own judgment and understanding of your financial needs.