Retirement income specialist Just, this week launched the 2019 findings from ‘Just Retirement Insights’ – a comprehensive review and commentary based on face-to-face interviews with over 520 pre-retirees and retirees. The third tracking study of a series, Just Retirement Insights aims to understand the South African retirement market and their retirement needs in a changing economic and political climate.
Just in the Media
People save little, but have high expectations of retirement income
This independent article highlights the importance of awareness and careful planning in retirement. Findings from a recent survey by Just SA found that more than 60% of the respondents have less than R1 million in retirement savings, but quite high expectations about the income they will be able to draw from it in retirement. Just CEO Deane Moore said at a 50Plus-Skills conference in Johannesburg that the rule-of-thumb drawdown rate for people between 60 and 64 is around 5%, however the expectation for people earning less than R1 million is a drawdown rate of 16.5%.
Medical underwriting ‘can boost your annuity’
Financial worries should be the last thing on the mind of a retiree diagnosed with breast cancer, says Bjorn Ladewig, longevity actuary for retirement income specialist Just. Ladewig says it is therefore beneficial that retirees buying an annuity income at retirement are medically underwritten at the beginning of the process to see whether they qualify for a higher income
Most South Africans will face a bleak reality when their working lives come to an end
Deane Moore, CEO of retirement income specialist Just South Africa, says there is a way to consciously consume more in your active retirement years, knowing that later on you can fall back on a lower income that at least covers your essential expenses for life.
Give your retirement income legs rather than aiming for a jackpot
Just is a strong advocate for using the right tools to manage risk in retirement: insurance for longevity risk, and investment strategies for investment risk and inflation. This recent Business Day article highlights that: “The latest thinking on providing an income in retirement recognises the need to minimise the risks of an 'income crash' due to the effects of longevity, investment risks and inflation.” It is worthwhile to compare the product features and pricing of available retirement solutions with a financial adviser.
Small spending adjustments that could lead to a better retirement
In the face of rising living costs and high levels of household debt, the notion of retiring comfortably seems beyond reach for many South Africans. However, retirement income specialist Just maintains that soon-to-be retirees can facilitate a smoother transition towards a sustainable lifestyle in retirement by rethinking their essential spending.
Ensuring a sustainable pension
In South Africa we grapple with the problem that people haven't saved enough for retirement. In addition, people are living longer and market returns are unpredictable, so retirees need to be resilient in the face of uncertainty. With most retirees using living annuities to give them an income, many are worried their capital could run out too early. Is there a solution?
Getting the best of both worlds in retirement
It no longer needs to be a case of choosing between the flexibility of a living annuity or the security of a life annuity; hybrid products deliver both. Deane Moore comments in an article on Moneyweb by Patrick Cairns on the recent announcement that hybrid annuities can now be used within pension funds.
Longevity protection in a living annuity
Retirement fund members will now be able to secure longevity protection within a living annuity. This comes after the Financial Services Conduct Authority (FSCA) announced an exemption from its criteria for living annuities in a default annuity strategy. The exemption expands customer choice and will help improve the financial outcomes of people in retirement.
New rules should make pension choices simpler
An article first published in Financial Mail, talks about the default regulations and the changing mindset of pension funds. It also mentions Just’s partnerships and the ability to provide enhanced annuities to people who may have earned lower incomes, are smokers or may have worked underground or those with life-shortening illnesses.
Your retirement income options
If you are a member of a pension fund and or have a retirement annuity, two-third of your financial retirement amount must be used to purchase an annuity income. Maya Fisher-French explains some of the diferences between a living annuity and a guaranteed life annuity.
Consciously apply your capital at retirement (radio interview)
Twané Wessels, Product Actuary at Just, chatted to Michael Avery on Classic Business about consciously applying your retirement capital, and the ability to provide legacy income for dependants.