Annuities

Explore the Category

Living annuities require dynamic management to preserve your capital

03 June 2024

When you buy a living annuity, you sign up for a difficult balancing act – spending your money just fast enough to enjoy a decent standard of living but not so fast that your capital expires before you do, according to Andrew Davison, chairman of the Investments Committee of the Actuarial Society of South Africa (ASSA).

New actuarial research identifies how different investment strategies may prevent capital erosion in living annuities

04 October 2023

Adopting an aggressive investment strategy in retirement seems counterintuitive. New actuarial modelling shows, however, that most living annuity investors need to consider higher equity exposure together with lower drawdown rates to avoid running out of money.

Ensuring living annuity income longevity

09 March 2023

ASISA (The Association for Savings & Investment South Africa) has certain suggested income drawdown levels for investors in living annuities, which are based on age and gender. These guidelines are advantageous, but they don’t necessarily include different risk scenarios. In this article, I present some easy-to-follow ideas which benefit the client and intermediary alike.

A tax change that may affect your client’s monthly cash flow

09 May 2022

Clients who have more than one annuity, or receive an annuity income in addition to a salary, are facing a significant reduction in their monthly cash flow following tax directive enhancements issued by the South African Revenue Services (SARS), effective 1 March 2022. These enhancements require fund administrators, life insurers and living annuity providers to apply a higher prescribed rate to an annuitant’s income than the rate they might have used based on the client’s product portfolio.

quick poll

Question

What is the main benefit you expect from the non-life insurance industry’s growing adoption of AI and automation?

Answer

Better client outcomes Cost and resource savings Faster decision-making More accurate underwriting

View the Results