pension income
Depending on the nature of their retirement income, the death of the first spouse may impact their retirement income and it is important to understand what the surviving spouse would receive in terms of income going forward. It’s also important
The couple’s retirement horizon effectively spans from the day the older spouse retires to the day the younger spouse dies, and this can make retirement scenario planning and modelling somewhat challenging.
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
As a function of ageing, death becomes more pervasive as retirees get older. Experiencing friends and acquaintances falling ill and dying is depressing, morbid and sad – and this can lead to what is referred to as death anxiety. The
Regulated by the Divorce Act, Pension Funds Act and Income Tax Act, the purpose of the pension interest calculation is to allow divorcing spouses, where applicable, to share in each other’s retirement benefits at the date of divorce without having
A typical life annuity policy terminates on the death of the policyholder which means that it is not necessary for any beneficiaries to be appointed. Conversely, all capital housed in a living annuity when the policyholder dies can be distributed
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
To buffer against the risk of an early death, a guaranteed period life annuity provides for a pre-determined period (e.g. ten years) during which the insurer is obliged to continue paying the pensioner’s annuity income even if the pensioner dies
Despite the fact that you may have nominated a beneficiary (or beneficiaries) to your retirement fund, it remains the function of the trustees to allocate and apportion these funds.
The risk of one’s annuity income not keeping pace with inflation is another major risk that retirees need to contemplate, especially as medical inflation continues to outstrip consumer inflation by around 4% year-on-year.
