Brexit: Volatile financial markets are a stress test for living annuitants

8 July 2016

Volatile financial markets in the wake of the Brexit ‘Leave’ vote are a reminder for living annuitants not to risk retirement savings they can’t afford to lose.

Over the years, living annuities have been offered to clients with modest retirement savings rather than only to wealthier people who can afford to ride out financial storms.

Stephen Lowe, Group Communications Director at Just Retirement in the UK, said that the days since the referendum results were announced should be seen as a “stress test” of the longer term financial planning of those retirees who are invested in living annuities.

The JSE All Share Index fell as much as 5,4% on Friday 24th June 2016 before closing at 3,4% down.

“Anyone feeling anxious about what is happening now should consider if they are putting at risk money they are relying on to underpin their living standards later,” said Lowe.

People have to strike a balance between how much certainty they want and how much risk they are willing to take.

“Our view is that pension freedom is having enough income to cover day-to-day living costs that is guaranteed to last for retirement. Once that core of income is in place, retirees have the freedom to invest, spend or give away what’s left,” said Lowe.

This ties in with the scenario we presented to you of Eddie and Priscilla, who will have a better outcome by securing essential income in the Just Retirement Enhanced With-Profit Annuity and investing surplus assets in a living annuity.

We look forward to quoting on a secure guaranteed income for your clients.

If you have any queries please email

We believe everyone deserves a just retirement.