The R380 billion living annuity market crisis
The majority of the approximate 500 000 Living Annuitant Clients and their Spouses in South Africa “will run out of their investment capital, currently estimated to exceed R380 Billion, long before the last dying survivor and thereby create a further tragic additional set of statistics to be added to the SASSA numbers. Many will be facing Health and Lifestyle challenges including Cancer, Dementia etc.
The Living Annuity Crisis is of real concern to all IFA’s, the Financial Services Industry and “The Financial Services Board (FSB) that is concerned that pensioners may not properly understand the risks of using living annuity products, and that in many cases their “money may be depleted prematurely” and Proper disclosure is required for Treating Customers Fairly purposes and to improve customer outcomes” – Jurgen Boyd (Personal Finance – 11/03/2017).
Ideally, these 500 000 Living Annuitants needs to be Advised and Guided, by Independent Financial Advisors (IFA’s), on all the options open to them that are available from the current and future multiple Product Provider Solutions!
The South African Independent Financial Advisor Association (SAIFAA) Launch Program begins during August 2017 where a series of “Forums” focusing on the R380 Billion Living, Life and Hybrid Annuity (LL&HA) Crisis.
Our Forums will “add-value” to our Founder IFA Membership where they will be exposed to a “multiple range” of Product Provider Solutions that will allow them to choose which “Products and Solutions” they believe will assist them in providing suitable advice, guidance and help that they will be able to incorporate within their IFA Practices. These “Solutions” will cover the full range of Living Annuity “best asset allocation” choices, Life Annuities that includes the Health and Lifestyle Aspects and Hybrid Blends of these Solutions.
All IFA’s are encouraged to join SAIFAA as Founding Members so that they will be able to attend the 2017 Living, Life and Hybrid Annuity Forums that take place in Bellville (08/08), Pretoria (15/08), Sandton (16/08) and Umhlanga (17/08) where the first 5 sets of Solutions as well as the October Forums for the next 7 sets of Solutions will be presented. No IFA can afford to miss out on these Forums that will include the next set of a further 7 sets of Solutions during February 2018.
SAIFAA is encouraging their IFA Founder members to enthusiastically embrace this “Treat Clients Fairly” opportunity that could include providing ”pro-bono” advice to those who cannot afford the costs of these ongoing services! IFA’s can contact Derek Smorenburg and the SAIFAA Membership Committee via the website (https://saifaa.co.za/).
DIscovering & exploring the multiple client product options & solutions with SAIFAA
August “part 1” forum(s) dates, proposed times, speakers & venus (09:15 for10:00 to 15:00)
Bellville (Tues 08/08), Pretoria (Tues 15/08), Sandton (Wed 16/08), KZN/Umhlanga (Thurs 17/08)
Opening and SAIFAA launch by the Chairman, John Kinsley – “Why is there a need for SAIFAA as the Voice of Independent Financial Advisor with the Public, the Regulators, the Media and the Industry”
- David Gluckman of Sanlam Umbrella Funds – “Default Regulations and Living Annuities – issues to consider when retirement funds implement annuity strategies and the experience and learnings to date”
- Marc Thomas of Bridge Fund Managers – “Challenges, risks and solutions for Living Annuities”
- Christo Lineveldt of Coronation Fund Managers – “Sharpening your living annuity game: tips for solving the post-retirement puzzle”
- Meyer Coetzee of Prescient Investment Management – “Low Cost with Predictability, the Perfect Marriage”
- Mark Lapedus of Liberty Investments – The Bold Living Annuity – “An innovative solution to mitigate the risk of eroding capital post retirement”
- Announcements & Closure by the Founder of SAIFAA, Derek Smorenburg – (https://saifaa.co.za/)
Independent Financial Advisors (IFA’s) are invited to join SAIFAA as Founder Members at a cost of R3 000 pa or IRO Multiple Individual Corporate Members at R2 400 pa & FPI Members at R2 000 pa in accordance with SAIFAA Membership Rules.
Founder Members will be able to reserve their seats, “free of charge” for both the August & October LL&HA Forum(s) as well as the planned February 2018 LL&HA Forums. SAIFAA will be planning at least Six Forums during 2018!
Non-SAIFAA IFA Members delegates will be considered at a cost of R500 IRO the August Forum(s) if space allows!
October “part 2” forum(s)
Sandton (10/10), Pretoria (11/10), Umhlanga (12/10), Bellville (17/10)
LL&HA Solution Presenters on-board: Allan Gray, Analytics, Investec, Just, Marriot, Old Mutual & Prudential
