Annuity types

The more income you require from an investment-linked living annuity the less the death benefit you will receive. As one goes up, the other goes down. What that means is that benefits for heirs are seldom achieved. A DAILY MAVERICK op-ed explores the complexity of living annuity investments from Bruce Cameron, and why it is recommended to seek financial advice. 

A regular contributor to the DAILY MAVERICK, Bruce Cameron says: "Most living annuity pensioners had already received a serious body blow even before the virus and the downgrade of South Africa’s debt, with many already having high drawdowns. Despite this, 90% of South African pensioners want living annuities on which to retire, while at the same time research undertaken by Sanlam and Just SA finds that 87% of retirees want security of income." 

BUSINESS DAY reports that almost every asset class is showing severe losses for the quarter to date and asset managers are calling March an unprecedented month for investments as concerns on the effect of the coronavirus on economies around the world spread. Good news for pensioners is that the cost of purchasing a guaranteed income for life has gone down by almost as much as the fall in value of balanced portfolios, says Just CEO Deane Moore.

CEO Deane Moore spoke to Michael Avery on CLASSIC BUSINESS about how retirees are facing the risk of not having a sustainable income for life in an environment where investment markets have crashed amid COVID-19, and retirement savings have been significantly reduced. He provides some practical solutions to protect their income for life. [Audio]

The hybrid annuity balances retirees' need for income security with their desire to leave a legacy to loved ones.

Dementia can creep up by stealth and rob you of your financial security in retirement. Here’s how to protect your retirement income should you face cognitive decline.

Consider tax when choosing an income vehicle in retirement. Compared to unit trusts for example, a tax-efficient annuity can help to provide you with the highest possible income.

Can you afford to be exposed to highly volatile markets in retirement when you are dependent on that same investment vehicle to provide you with stable income?

Many trustees are establishing default annuity strategies which inadvertently set up their members for failure by giving them little to no guidance about the sustainability of their income in retirement and by not providing an option to secure a guaranteed Lifetime Income.