Retirement reform came under the spotlight again when National Treasury issued its draft “Default Regulations and Explanatory Memorandum” on 22 July 2015. In this draft, boards of trustees of defined contribution fund arrangements are mandated to take responsibility to ensure that fund members are provided with appropriate annuity solutions at retirement. Read more
When should your living annuity client consider an enhanced annuity?
I’d like you to think about Jacob and Margaret – they have a lot in common. They both:
- purchased living annuities at retirement;
- are now 75 years old;
- have living annuity investment portfolios consistently earning 9% pa after all advice, investment and administration costs;
- need R14,500 per month to cover living expenses, increasing with inflation at 6% pa. To meet this:
- Jacob currently draws 8.7% pa from his living annuity of R2m.
- Margaret currently draws 7.9% pa from her living annuity of R2.2m.
Three critical questions to ask your client
I know just how much you need to get through when you meet with a client to find the right product to meet their retirement needs. In a country with a relatively high prevalence of smoking and an obesity epidemic, the state of your client’s health could be at the top of your discussion list.
Enhancing the nutritional value of annuities
The cost of a basic monthly ‘healthy food basket’ in South Africa is R866 for one person. A more diverse and nutritional food basket, with greater quantities of animal protein, fruits and vegetables, costs 24% more – R1072 per month.*
Living longer, living sicker
A report released by Statistics South Africa (StatsSA) in July this year shows that life expectancy (from birth) in South Africa is currently estimated to be 61 years for males and 64 years for females, eight years longer than the estimated life expectancy in 2002.
All-Share Merger of Just Retirement plc & Partnership Assurance Group plc to create JRP Group plc
Investor’s Notebook: Just Retirement’s double meaning
I DON’T think anybody in the life industry was ever as helpful or as patient with me as Peter Doyle. First as the expert on Aids underwriting and then as CE of Metropolitan, he was a mine of useful information and guidance. Read more
Just Retirement launches enhanced retirement product in SA
A local team has founded Just Retirement South Africa, a subsidiary of the UK-listed Just Retirement Group, with a product designed to increase the retirement income of those who need it most. Read more
Could you qualify for bigger pension?
In 2012 National Treasury released a paper called “Enabling a better outcome in retirement”. It raised a number of concerns about the retirement annuity market in South Africa, including issues like fees, a lack of proper advice and value for money. Read more
High blood pressure can mean higher retirement income
Research conducted in 2014 revealed that South Africa has the highest rate of hypertension reported for people aged 50 and over in the world, at any time in history.* Current estimates indicate that 6.3 million South Africans suffer from hypertension**.