Rain or shine, your pension is fine

Retirement is a bit like setting off on a long-awaited summer holiday. You’ve saved up, packed your bags, waved goodbye to the daily grind, and now you’re cruising into your later years, sunhat on, wind in your hair and fingers crossed for clear skies! But just like any good getaway, it’s wise to have a plan—and maybe some protection—just in case the weather turns. When it comes to financial planning for retirement, one product stands out as your financial raincoat: life annuities.

What’s a life annuity?

Imagine getting a paycheck every month for the rest of your life—no matter how long you live. That’s the magic of a life annuity. You pay a lump sum to an insurer, like Just SA, and in return, we promise to pay you a regular income for the rest of your life. It turns your savings into a regular pension, minus the stress of managing withdrawals or investment market ups and downs.

Most of us spend decades working, saving, and navigating the rollercoaster of investment performance, interest rates or inflation hikes.  But a life annuity means goodbye daily grind, hello peace of mind!

Why life annuities make sense

None of us know how long we’ll live. And while that’s a beautiful mystery, it can make budgeting for retirement a bit tricky. What if you outlive your hard-earned savings?

Life annuities remove that guesswork. They’re not affected by market volatility, and they guarantee income for as long as you live.

Plus, annuities can be tailored to suit you and your family’s needs. Prefer inflation protection? Choose one that increases annually. Want to include your spouse? Opt for a joint-life annuity. There’s also the option to guarantee a minimum payment period, even if you pass away.

The power of blending

It is no longer an either/or decision between a flexible pension (from a living annuity) or a guaranteed one for life (from a life annuity). Blended annuities give you the best of both worlds by combining the benefits in one.

Living annuities offer flexibility—you control the investment and the drawdown rate. But they come with risk: poor market performance or drawing too much too soon can deplete your funds. Life annuities, on the other hand, offer stability but less flexibility.

By blending the two, you create a balanced retirement income strategy. You get the security of a guaranteed income and the freedom to manage your investments. We highly recommend speaking to a financial adviser to help you understand all your options better.

So, whether you are just entering retirement, or need to reassess your circumstances at a later retirement phase, consider chatting with a financial adviser about your annuity options. Because you’ve earned it—and your retirement should be as rewarding as the life you’ve lived.