Living annuity
Preserving the purchasing power of your money
If you've saved for your retirement using an employer's fund, a preservation fund or a retirement annuity, you can invest the proceeds when you retire in the Ninety One Living Annuity and draw an income.
Your income after retirement needs to keep pace with inflation. Generating investment returns ahead of inflation is therefore crucial for sustainability of income in retirement.
You need to carefully manage your income stream every year so that your capital has the ability to grow, further enhancing your retirement provision.
Ninety One Living Annuity investors have a range of unit trusts from which to choose. We offer funds that are suitable for retirees who need to preserve their capital and require dependable returns in excess of inflation.
The Ninety One Living Annuity – key considerations
- You need to be comfortable with assuming market risk
- You need to have sufficient retirement savings to ensure a sustainable income throughout your retirement
- A financial advisor can help devise a suitable income retirement strategy for you
Benefits of the Ninety One Living Annuity
01You have the flexibility to select your level of income (within certain parameters) and payment frequency. |
02You have access to a wide range of unit trusts that can help you grow your retirement income. |
03You can switch between funds as your financial needs change. |
04On death, your full benefit will be transferred/paid to your nominated beneficiaries. |
Here’s how it works
What you need to do:
Complete the Ninety One Living Annuity application form online to invest a portion or the full value of your benefit from a retirement fund in our living annuity. Select one or more funds from the Ninety One range of funds.
View our Core Fund range View our Quality Approved list of funds
What happens with your money?
The fund managers invest your money in a portfolio of assets such as equities, bonds, cash and listed property, based on your fund selection.
The investment is managed on your behalf according to the fund’s objectives, for example, beating inflation over a certain time period. This plays a key role in determining the return on your investment.
What are the investment minimums?
- Initial: R100 000
- Additional: R10 000
How do you select your income level?
- You can select between 2.5% and 17.5% of the investment value per year – you can change this percentage once a year at your anniversary date.
How often will you receive income?
- You can choose to receive income monthly, quarterly, semi-annually or annually – you can change the frequency of income on your anniversary date.
What are the tax implications?
- There is no income, dividend or capital gains tax within the policy.
- The income you receive is taxed at your marginal tax rate.
Can you withdraw the capital?
- Only once the value of your living annuity falls below R125 000, can you withdraw the full value.
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 introduces some new ways to approach this age-old problem.
- Typical situations facing advisors and pensioners today.
- Many investors simply haven't saved enough to begin comfortably drawing an income of less than 5% from a living annuity.
- 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.