A living annuity is an investment product which pays an income from your retirement savings during retirement.
Earn An Income At Retirement
carefully selected investment portfolios
It is intended to provide a regular income to investors who have retired, using retirement savings received on retirement from a pension, provident or retirement annuity fund. You can select the income you wish to receive from the investment. You can choose to receive your income monthly, quarterly, twice a year or once a year.
Your income may be reviewed and changed every year. Your income is not guaranteed for rest of your life. It advisable you withdraw a sustainable level of income. We offer a selection of carefully selected investment portfolios to continue to grow your capital over time.
- You decide how much income you need as a regular income between 2.5% and 17.5% of the value of the investment
- You can change your income amount every year to provide for your changing needs
- Your investment will grow based on the performance of the model portfolios we select for you
- Income tax will be deducted from your income before it is paid out to you
- The funds in your living annuity are available to your beneficiaries upon your death
- Your income may not last you for the rest of your life, if you withdraw a high regular income
What is a living annuity?
A living annuity is a post-retirement product which allows you to invest your retirement savings and draw an income. You can purchase a living annuity once you retire from pension, provident, preservation or retirement annuity fund.
Who can invest in a living annuity?
A living annuity is suitable for individuals who retire from pension, provident, preservation or retirement annuity fund intended to provide a regular income.
How often will I receive my income?
You can select to receive your income monthly, quarterly, twice a year or once a year.
Can I change my income at any time?
You will only be able to change your annuity income amount and payment frequency once a year on the anniversary date of the policy. The anniversary date is the day of the year that the policy started.
Will my money continue to grow?
We select an investment strategy based on your personal circumstances and goals so that your money continues to grow. The value of your account depends on the performance of the underlying investments (shares, bonds, property, money market or offshore investments) that we select for you.
How much income can I withdraw from my living annuity?
Your annual income withdrawals can range from 2.5% to 17.5% of your total savings. You have the option to adjust your level of income every year.
Is my capital value guaranteed?
We cannot guarantee what your account value will be in the future. The value of your account depends on the performance of the underlying investments (shares, bonds, property, money market or offshore investments) that we select for you. The market value of the investment may go down as well as up, and past performance is not necessarily a guide to the future.
What happens if I die?
In the event of your death, the money in your living annuity will be distributed to your beneficiaries. Your beneficiaries may choose to receive the money as an annuity, as a lump sum or as a combination of both.
What are the risks of investing in a living annuity?
In a living annuity you are taking on the risk of using up all your money before you die. It is important to remain disciplined about the level of income you withdraw. You need to be aware of the factors that influence your level of income in order to be able to manage this after you retire.
What factors affect my choice of an annuity?
- Do you need to leave money in your estate when you die?
- What is your perceived life expectancy?
- What is your financial position at retirement?
- What is the age of your dependents and their circumstances?
- What income will you need when you retire?