living annuity
Another mechanism for ensuring effective succession planning is by nominating beneficiaries to your life policy or living annuity. If you wish to provide capital to your spouse and/or children in the event of your death, taking out life cover is
If you are dependent on generating some form of income in your retirement years, it is wise to consider your prospects of re-entering the workforce if your ideas for earning income don’t come to fruition. If there’s even a remote
Delaying your planned retirement by even five years will affect your investment horizon, your draw down timeline, and subsequently the level of risk you are able to take in your investment strategy. If you’re working towards a delayed retirement, ensure
Because the aim of a living annuity is to provide the policyholder with a regular income throughout retirement, limits are placed on the level at which investors can draw down from their investment. As it currently stands, investors can select
Retiring from your retirement funds marks the transition from saving towards retirement to drawing from your capital and pitching your draw down rate at the right level at the outset is critical. The 4% rule, which has its critics, assumes
With financially dependent adult children, this life stage is critical when it comes to fine-tuning your retirement plan, settling debt, and structuring your assets. Having increased your net worth, reduced your home loan debt, and with fewer financial dependants, it
A retirement at age 55 means that you still have a potentially long-term investment horizon and, as such, you will need to ensure that you are invested appropriately for this time period. You will need to ensure that your investment
Unlike retirement funds whose distributions are subject to Section 37C of the Pension Funds Act, member owned living annuities are free to nominate beneficiaries to their investment. In this regard, living annuities differ from guaranteed life annuities which, generally speaking,
The emotional impact of adult children emigrating from South Africa was brought starkly into the spotlight during last year’s hard lockdown where the plight of many isolated and lonely old people confined to retirement homes was noted. Many older people
The capital in your living annuity may not be attached by means of a court order should you be declared insolvent. However, any income drawn from your living annuity does not enjoy the same protection and may be attached by
