Annuity types

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. 

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?

Just SA’s Bjorn Ladewig discusses choosing an annuity product at retirement with Simon Brown on MONEYWEBNOW [Audio at 13m30s] 

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.

"Reintroducing the with-profit annuity: There is another type of life annuity that is making somewhat of a comeback at the moment, namely the with-profit annuity. Commentators single out Just SA, Liberty, Momentum, Old Mutual and Sanlam as the main life insurers in the with-profit segment," says FA NEWS

"If you cannot draw a reasonable level of income, you take on increased longevity risk and investment risk, and therefore increased risk of failure in a living annuity investment. In this case, it’s worth considering transferring some or all of the risk to an insurer by purchasing a guaranteed annuity," says Shaun Duddy, Senior Manager in Product Development at Allan Gray in PERSONAL FINANCE

In his latest op-ed for DAILY MAVERICK, Bruce Cameron says that the best way to overcome the disadvantages of living annuities and guaranteed annuities is to use both. This becomes even more important with COVID-19 and the downgrading of South Africa’s credit rating.

If you are within about five years of retirement and your savings have taken a hit with the recent market falls, there are some things you need to think about, writes Laura du Preez in a recent SowetanLIVE article featuring Just CEO, Deane Moore.

PERSONAL FINANCE clears up some confusion regarding annuities, including converting from a living annuity to a life annuity. Just's Segabe Ditodi contributes to the article and provides insight into the broader process.

Bruce Cameron has written a series of articles for the DAILY MAVERICK dealing with some of the pros and cons of guaranteed annuities versus living annuities. Our CEO Deane Moore features in his latest article on retirement earnings and death benefits, and aims to clear up some misperceptions surrounding guaranteed annuities and leaving a legacy.