Living annuity an active solution

A new approach to living annuities.
A new approach to living annuities.

One of the biggest risks pensioners face is running out of money.

A lack of retirement savings and depressed investment markets have left many pensioners and financial advisors anxious about the future. Our in-house research introduced some new ways to approach this age-old problem.

In the following series of articles and videos we unpack the living annuity conundrum, looking at the unique investment case pensioners face and how, through our research, we believe these needs can be addressed.

Typical situations facing advisors and pensioners today.


Many investors simply haven't saved enough to begin comfortably drawing an income of less than 5%.


Some pensioners are drawing an unsustainable level of income and risk running out of money.


Pensioners face a unique investment challenge, balancing long-term income and growth needs.

Q:  How should pensioners invest their capital and what level of income can they afford to draw? What exposure to offshore equities should be considered and what is the significance of volatility on ensuring a comfortable retirement?
Jaco van Tonder

Important information

This communication was originally published by Investec Asset Management (Pty) Ltd, the predecessor of Ninety One SA (Pty) Ltd. The information is accurate as at the original date of publication, but any views expressed may no longer be current. The communication has been republished in our new branding but has not otherwise been updated.

The information presented here is not intended to be relied upon as investment advice. Various assumptions were made. There is no guarantee that views and opinions expressed will be correct. The findings expressed here may not reflect the views of Ninety One SA (Pty) Ltd as a whole, and different views may be expressed based on different investment objectives. Ninety One SA (Pty) Ltd has prepared this communication based on internally developed data, public and third-party sources. Although we believe the information obtained from public and third-party sources to be reliable, we have not independently verified it, and we cannot guarantee its accuracy or completeness. Ninety One SA (Pty) Ltd does not provide any financial advice. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Prospective investors should consult their financial advisors before making related investment decisions. This is the copyright of Ninety One SA (Pty) Ltd and its contents may not be re-used without Ninety One SA’s prior permission. Ninety One Investment Platform (Pty) Ltd and Ninety One SA (Pty) Ltd are authorised financial services providers.