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Sustainability

Hybrid annuities: Something to consider when choosing your pension

“Hybrid annuities will help to optimise the pension benefits to balance the competing objectives pensioners face. Hybrid annuities provide a sustainable income on the one hand, versus having flexibility for unforeseen events and the ability to leave an inheritance on the other,” says John Anderson in Bruce Cameron's DAILY MAVERICK op-ed on hybrid (blended) annuities.

[Related article: HYBRID ANNUITIES: SOME OF THE CHOICES]


Life annuity sales soar amid lockdown losses

Amid the market instability brought on by COVID-19, retirement income specialist Just has reported record demand for life annuity solutions from South African pensioners looking to lock in an income for life. Sales for life annuities have doubled relative to 2019 since the COVID-19 market crash in mid-March 2020. CEO Deane Moore attributes this growth to attractive annuity rates and pensioners seeking to de-risk their retirement income in an unpredictable financial climate.


Alternative ways to structure a pension

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.


The tricky balance between retirement earnings and death benefits

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. 


Living Annuity vs Death Benefits: A tough balance

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. 


How to sustain your pre-crash retirement income

Life annuity rates have increased by 10-15% since the beginning of the year, which offsets the reduction in market values most people in or close to retirement have experienced in the recent market crash. In other words, you’re currently able to get a higher income from each Rand of your retirement capital if you invest it in a life annuity today than you were three months ago – in fact 10-15% higher. However, this window of opportunity won’t last forever.


The dichotomy between what pension scheme members want and what they get

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." 


What should investors do when unit trusts have lost across the board?

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.


Why you should have two pots for retirement

Should market conditions persist for the next 12 months, retirement income specialist Just believes that pensioners may run out of money years earlier than in normal investment conditions. Just CEO Deane Moore looks at some sensible steps that pensioners can take to protect their income in the current climate in an article featured on BUSINESS TECH.


Does your retirement solution withstand the volatility test?

Risk management in retirement is key to helping a pensioner sustain income for life – to cover their essential expenditure and to draw more in the early years when they are more active. The COVID-19 market crash is exposing some shortcomings of outdated risk management strategies that have relied purely on investment tools to tackle all risks in retirement. Many pensioners invested in old-style living annuities are seeing their drawdown rates rise and are consuming capital that won’t be there to benefit from any future market recovery.


Retirement feature: Steps to protect retirement income during COVID-19

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]


Retirement in the time of COVID-19: how to secure a sustainable income for life

MOONSTONE reports that the Coronavirus has shattered the myth that there is no place for the guaranteed annuities. Retirement in the time of COVID-19, which sees pensioners facing not only the risk of contracting the Coronavirus, but also the risk of not having an income that can sustain them for life due to the current environment that has seen investment markets crash, reducing retirement savings substantially.