Soon-to-be-retirees have many options to consider to ensure their retirement and discretionary savings work best for them in retirement. If you have diligently saved for retirement, you don’t pay income tax on contributions paid into a retirement fund or retirement annuity, nor on the investment build up within these retirement vehicles. But when you retire and start taking the money out, it will be taxed as income. This article also appeared in BUSINESS TECH.
News and Views
Risks in retirement are increasing - but you don’t have to tackle them alone
Risks in retirement are not new but may have been exacerbated with the COVID-19 pandemic and its effect on lifestyles. Yet there are some practical steps that you can take to best achieve health and wealth in retirement, regardless of market conditions. This article also appeared in the Autumn edition of SILVER DIGEST.
Impact of lower salary increases on retirement savings
This MOONSTONE article is adapted from a recent article by Product Actuary Twane Wessels. She says salary increases have been trending downwards for several years, and the COVID-19 pandemic has further added to the negative growth as many South Africans experienced wage freezes and zero increases. The lower your increases, the lower your contributions to your retirement fund will be, and the less money you have invested to capitalise on any investment growth.
Lower salary increases mean less retirement savings
What effect can a zero percent increase have on your retirement savings? As contributions to employer pension or provident schemes are based on a percentage of your salary, the answer is clear. The lower your increases, the lower your contributions to your retirement fund will be, as well as the amount of your employer’s contribution. And the less money you have invested to capitalise on any investment growth. This article also appeared in COVER and FA NEWS.
Five things you may not know about life annuities
Despite the perception that life annuities are complex retirement products, they present a practical solution to protect against investment market volatility and increased longevity. This article looks to answer some of the questions retirees still have about life annuities. This article was published on IOL PERSONAL FINANCE
COVID-19 has led to increased risk aversion among retirees
People are still concerned about the risk that they will live longer than they have anticipated and outlast their savings, says a MONEYWEB article featuring insights from Just SA CEO Deane Moore.
The article covers content shared at the recent 50plus-skills webinar on mental, physical and nutritional health for the 50+ community, proudly sponsored by Just SA. We also shared some results from our 2020 Just Retirement Insights, together with some practical steps to take to secure at least a portion of your retirement income.
With-profit life annuity increases comfortable beat inflation
MONEY MARKETING focused on the benefits of a with-profit annuity in their February digital magazine (page 28). Since its launch in 2015, Just has focused on enhancing the features, transparency and performance of with-profit annuities in South Africa for the benefit of pensioners and advisers. With-profit life annuities offer retirees an income for life, which will never reduce regardless of what happens to investment markets or how long a retiree lives.
The case for replacing some bonds with annuities
According to the WALL STREET JOURNAL, if you want to maximise how much you can safely spend in retirement, some economists say, sell some of your bonds and buy lifetime income annuities. [Subscription required]
With-profit life annuity increases comfortably beat inflation
Retirement income specialist Just announced 2021 with-profit annuity increases that comfortably beat inflation, benefitting pensioners with a much-needed boost to their retirement income.
With-profit annuities – a ‘just’ choice for many retirees
Research shows that one of the most important needs in retirement is to generate an income to cover expenses for life. Consider a solution that mitigates the risk of running out of money much earlier than planned. This article was published in the You’ve Earned It/YEI - the website for South African over-60s.
Will COVID-19 vaccine reverse retirement fears?
An increased need for certainty in times of uncertainty is a retirement trend that gained momentum in the wake of the pandemic. Is it possible that retirees may revert to pre-pandemic attitudes towards retirement planning? We don’t think so, and here’s why.
Living with Diabetes: You can secure higher income in retirement
An enhanced life annuity offers retirees with diabetes (or any life-threatening illness or poor health) the opportunity to ensure they are getting the highest possible starting income in retirement. Based on latest figures – and other statistics relating to the health of the South African population – enhanced life annuities benefit at least 40% of retirees.