Blended living annuities – a just choice for retirees
A surefire way to secure a stable income in retirement is through a life annuity. But the biggest detractors from a life annuity are often the perceived lack of flexibility, as well as the belief that leaving a capital legacy for beneficiaries is not possible.
Historically, the inability to adjust income from a life annuity has led to many retirees self-insuring against running out of money and is the reason why many South African retirees opt for a living annuity.
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.
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.
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]
How to manage your retirement funds in uncertain times
With lacklustre local stock returns, questions about the creditworthiness of government debt and record-high offshore markets, those close to retirement may be left with daunting choices. Amanda Visser spoke to retirement specialists on behalf of FINWEEK about the options. [Subscription required]
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.
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.
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.
The long-lingering ghosts for pensioners of the Covid-19 virus and the kleptocracy regime
Bruce Cameron says "The ghosts of the latest [market] events are going to be long-lasting. Investment markets are going to be volatile. You can expect increases in taxes, you can expect inflation or deflation and you can expect less income in the years ahead. It is best to take action now." Read the full DAILY MAVERICK article.