Bruce Cameron and Wouter Fourie CFP® joined BUSINESS MAVERICK journalist Ruan Jooste to discuss the challenges facing retirees and their options. Both financial planning experts say they are in favour of the new generation of hybrid [blended] annuity products, which marry the best of traditional life assurance annuity products with a living annuity.
News and Media
Navigating annuities: making it easier to choose best pension plan
Business Day covers how blended annuities provide the certainty of a life annuity and the flexibility of a living annuity and allows you to 'top up' the life annuity within the living annuity later in life should your income needs increase.
With profit annuities: a good alternative investment strategy for retirees
While it is important to consider expected income growth over a long-term investment horizon, the annuity conversation generally starts with: How much monthly income can I secure?
Benefits of Blending
With the cost of living constantly increasing, it’s very tempting to increase your drawdown rate when your anniversary rolls around. However, this can be very detrimental to your overall financial well-being. Read more on EBnet
A woman’s perspective on longevity
Product Actuary Twané Wessels says that women underestimate their longevity, with research highlighting a disparity of 5-7 years between actual versus expected life expectancy. What’s more, despite the probability of living longer and outliving their male counterparts, fewer females tend to do adequate financial planning to ensure a comfortable and sustainable retirement. Read the full article on IOL PERSONAL FINANCE
What to look for in an annuity product
Just SA’s Bjorn Ladewig discusses choosing an annuity product at retirement with Simon Brown on MONEYWEBNOW [Audio at 13m30s]
The long and short of longevity: a woman’s perspective
Just's Twane Wessels and retirement specialists Lynda Smith (50 Plus Skills) and Jennifer Nedzamba CFP® (Netto Invest) agree that many women have not yet grasped the concept of longevity fully, and as a result have not planned adequately for retirement. In light of their shared experiences and expertise, and to help create awareness, they offer their top considerations for women approaching retirement.
The Benefits of Blending
In their August magazine, FA NEWS published an article outlining the relatively new annuity option that enables a higher sustainable drawdown with less associated risk. When comparing current market solutions, Just shows how pensioners could increase their monthly income by 25% by purchasing a new-generation with-profit life annuity, rather than a traditional living annuity. However, in return for this higher lifetime income, they do need to forego the flexibility of how much they can draw. Read the full article for more detail.
Don’t rush investment decisions in times of uncertainty
It’s natural to feel a certain amount of panic during any crisis, let alone a global pandemic. But rushing into investment decisions through panic is always a bad idea, even if your nervous system is screaming at you to act. Click to read the full article by Bjorn Ladewig, Longevity Actuary at Just.
Life stages and life spans are changing – Financial Adviser has critical role to play
MOONSTONE reports that while the COVID-19 crisis initially provoked anxiety, Just CEO, Deane Moore reaffirmed that a retiree’s approach to retirement should remain the same, regardless of market conditions. When planning for retirement, he urged participants to think about their retirement savings in two parts – needs and wants. He then identified three sensible steps to follow to best manage and protect retirement income.
When I'm Sixty Four
When you hit retirement age, no one expects you to be your own doctor, mechanic or accountant. So why do so many of us assume that becoming a retiree automatically qualifies us to make the best decisions about the management of our retirement income?
Change your living annuity, not your drawdown rate
Just features in the Winter edition of SILVER DIGEST (page 22) and covers some options to consider to make your retirement income more sustainable in an environment where current regulations do not allow you to split your living annuity after retirement.