Selecting the correct annuity is critical, but you are not limited to one option.
When it is time to retire from your retirement funds (pension, provident, retirement annuity and preservation funds), there are essentially two main options available to provide you with an income (pension) - a guaranteed life annuity or a living annuity.
As financial advisors, we are often asked which annuity option is best. The two main annuity options intentionally differ, in fact they are almost opposite of each other, each with their own advantages and disadvantages.
These differences exist to help ensure that you can select an annuity option that best matches your individual life circumstances, goals, and objectives.
Guaranteed life annuity
A guaranteed life annuity is a solution that is typically offered by a life insurance company. An insurer will quote you a monthly pension (income) based on factors such as your age, gender (and that of your spouse), the purchase sum and whether you want annual pension increases or not.
This story is from the November 21, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 21, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Why buying vacant land in an estate is a good investment
Investing in a coastal estate is beneficial for everyone from first-time buyers to families and retirees, but the big debate is often between buying a home or buying land and building oneself.
A rising star in clean living
Soweto-based entrepreneur and author of the book #I am a housekeeper, Mbali Nhlapo, widely known as the founder of Sisters @ Work and a viral TikTok sensation, has become a household name in South African homes.
Notre Dame gets love
Americans open their hearts and wallets
Heart-stopping vistas of Cape Town
Table Mountain is the lodestar
K-culture doing OK in Sunshine Land
Fans flock to sites associated with boy band
Hello? Calling my owner?
Lost, but nearly always found-even your pet
Proteas tighten grip
DOMINANT: STUBBS, BAVUMA TONS BAT SRI LANKA RIGHT OUT OF THE GAME
Sirino looks ready to go
Gaston Sirino (above) could return for Kaizer Chiefs in their Betway Premiership clash with Royal AM today at the Peter Mokaba Stadium in Polokwane.
Inexperience becoming a tired excuse
There will always be reasons that teams are defeated, but there is one particular excuse that has become too easy for our national cricket teams to lean on when they lose.
Cricket-mad Vaibhav's dream becomes reality
Dreams have come early for cricket-mad Vaibhav Suryavanshi, the shy schoolboy aged 13 who is the youngest player in Indian Premier League history.
