Some 8% of South Africans suffer from diabetes, while millions more are unaware that they live with the disease. Those who retire with the disease – or are diagnosed with it after retiring – would qualify for a higher guaranteed income for life if they purchase an enhanced annuity with their retirement savings.
Based on these figures – and other statistics relating to the health of the population in South Africa – enhanced annuities would benefit at least two in every five retirees. Others who would also benefit from a health perspective include retirees who smoke, have a heart condition, cancer, chronic (ongoing) lung condition, had stroke conditions or were hospitalised for another condition within five years of retirement.
Enhanced annuities, a special kind of guaranteed annuity, offer a 10% to 30% higher guaranteed income for life. Just Retirement has been able to offer retirees who were quoted a monthly income of R2 000 for a guaranteed annuity an additional R200 or more per month through an enhanced annuity. Having diabetes need not mean the end of a normal, healthy life, and this extra amount empowers those with the disease to get more out of their retirement.
As done in the UK, every person who retires should obtain an enhanced annuity quotation to see if they could qualify for higher income in retirement. Unlike living annuities, where the biggest risk is that retirees receive declining income in the medium to long term, the customer is assured of receiving a guaranteed income that continues no matter how long they live.
To determine the amount of guaranteed income that customers will receive for life, they are asked a few lifestyle and medical questions. In this way, Just Retirement prices fairly – based on each individual’s circumstances. We do not require a medical examination.
Retirees can opt for an enhanced annuity either at or during retirement, as they can switch from a living annuity to an enhanced annuity at any time.
We believe everyone deserves a just retirement, which means good value for money for their retirement savings and fair treatment.