Note sull'episodio
Living Annuity in South Africa: What are the pros, cons and biggest risks?
A living annuity gives you flexibility, investment control and the potential to leave your remaining retirement capital to your family. But it also comes with an important responsibility: making sure your retirement savings last. So, is a living annuity the right choice for your retirement?
In this episode of the Family Wealth Pros & Cons series, Certified Financial Planner® Hardi Swart and Senior Financial Planner Cam Sondlo explain the advantages, disadvantages and risks of living annuities in South Africa.
You'll learn:
- How a living annuity works in South Africa.
- The advantages of flexibility and investment control.
- The risks of withdrawing too much retirement income.
- Why poor market performance early in retirement matters.
- The tax benefits and costs of living annuities.
- What happens to your living annuity when you die.
- The differences between a living annuity and a life annuity.
- Why combining both products may form part of a retirement strategy.
With living annuities, you can generally choose an annual income of between 2.5% and 17.5% of your investment value. But just because you can withdraw a certain amount doesn't mean that it's sustainable.
Whether you're approaching retirement, already retired or helping a family member make retirement decisions, this conversation will help you understand the important trade-offs.