life annuity
When purchasing a life annuity, the insurer assumes full responsibility for paying the annuitant’s income. The annuitant has no control or visibility over how the capital is invested or what returns the insurer earns.
Retirement planning is a comprehensive process that addresses the financial, logistical, emotional, social, and psychological aspects of your retirement. Start planning at least five years before your intended retirement date to work with your financial planner on strategies to ease
When a member leaves their employment, they have the option to leave the accumulated capital in the employer’s default investment strategy until retirement. The member also has the option of transferring the funds on a tax-neutral basis to a retirement
Where beneficiaries have been nominated on the investment, funds housed in a living annuity do not form part of your deceased estate and can be efficiently transferred to your loved ones in the event of your death.
If the member had no financial dependants at the time of death but had made beneficiary nominations, the trustees must first determine whether the member’s deceased estate is solvent. If not, then the death benefit – or a portion thereof
When retiring from a retirement fund, investors are required to use at least two-thirds of the fund proceeds to purchase an annuity. There are many factors that need to be taken into account when choosing the most appropriate annuity for
Legislation permits that the owner of a living annuity can draw down between 2.5% and 17.5% of the value of his living annuity every year, with the option to review the draw down rate at the living annuity’s anniversary. Investors
If you intend to retire from the fund and begin drawing down from your investments, keep in mind that your options are essentially the same as when retiring from a retirement annuity in that you have the option to commute
A significant advantage of a life annuity is that the policyholder is guaranteed an income for the rest of her life and will therefore never run out of money, regardless of what happens to investment markets or how long she
Unlike a life annuity (which is an insurance policy designed to provide a guaranteed income for life), a living annuity is an investment held in the investor’s name which is generally linked to an underlying investment on a LISP platform
