Dare to compare - Selecting the right annuity for your client
01 April 2013
You may have been following the recent debate in the media on an investment-linked living annuity (illa) vs. a guaranteed or life annuity. A paper, delivered by Mayur Lodhia and Johann Swanepoel, at the Actuarial Society of South Africa, sparked the discussion. The paper compares the ability of living and guaranteed annuities to provide a minimum real income for life. It also shows the often overlooked benefits of mortality pooling and how purchasing a guaranteed income stream may benefit you.