Living Annuities
A Living annuity is a financial product that pays you a regular income. A person can change their funds annually and also has an annual option to adjust the percentage of their income, with a minimum of 2.5% and a maximum of 17.5%.
As a member of a pension, pension preservation or RA fund, you must use at least two-thirds of your fund proceeds at retirement to purchase an annuity, once your fund value is more than R247 500.
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Care in your old age
Our consultants specialise in retirement planning and offer expert advice and guidance to individuals who are preparing for their retirement. Due to our in-depth knowledge of various retirement options, investment strategies, and financial planning techniques, we offer low-risk and high-risk options, so you can choose the level of risk that best suits your needs.
Our services are tailored for South Africans and we are committed to helping you achieve your retirement goals. We pride ourselves on providing comprehensive planning services to help you create a secure financial future.
Retirement Annuities
Pre-retirement products such as Retirement annuities could provide a lifetime guaranteed monthly or annual income for a retiree until their death.
These annuities are often funded years in advance, either in a lump sum or through a series of regular payments.
Discovery
Discovery’s Living Annuity is a cost-effective investment where you can invest your retirement savings to provide an income in retirement. It gives you access to a wide range of investment funds from top investment managers, allowing you the diversity you need. We uniquely reward clients with up to 50% extra retirement income for life when they withdraw wisely and live healthily in retirement.
- A minimum investment of R60 000 is required.
- Withdraw up to 17.5% of your annuity per year.Â
- You can leave the remaining annuity to beneficiary upon your death.
Sanlam
Sanlam’s Glacier Investment-linked Living Annuity (ILLA) allows you to meet your retirement needs with a flexible investment product that you can personalise. With control over the underlying investments and the income you draw, you can manage your retirement savings to get a sustainable income that will suit your needs.
- Minimum contribution of R100 000.Â
- Invest for life.Â
- Move your investment at any time.Â
- Adapt your income level.
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Why save for retirement?
Retirement plans are designed to ensure that you’re financially stable and secure once your permanent monthly pay checks come to an end. In South Africa, the retirement age is 65, which means that it’s imperative to invest in a retirement annuity earlier on to cover the expenses that come during retirement.
The reality is that you’re never too young to start saving for your retirement. However, we recommend that you start saving a portion of your income from the age of 20, or in the year that you turn 21.Â