Linked Life Annuities
A Linked Life Annuity (also called a living annuity) is a powerful retirement solution designed for South Africans who want flexibility, control, and the opportunity to grow their retirement income through investment choices.
Unlike a traditional life annuity, where your income is fixed for life, a linked life annuity allows you to decide how your funds are invested and how much income you draw each year (within the legal limits). This gives you both income security and growth potential throughout your retirement years.
Key Features of a Linked Life Annuity
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Flexible Income Drawdowns – Choose an income between 2.5% and 17.5% of your investment annually, tailored to your lifestyle needs.
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Investment Choice – Select from a range of underlying funds and portfolios, giving you the chance to grow your retirement savings.
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Control & Transparency – You remain in control of your investment strategy with regular reviews and updates.
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Legacy Planning – Any remaining funds in your annuity can be left to your beneficiaries, unlike traditional annuities where payments end at death.
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Protection Against Inflation – By choosing growth-oriented investments, your retirement income has the potential to keep pace with rising costs of living.
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Customizable Solutions – Align your annuity with your risk appetite, lifestyle, and financial goals.
Benefits of a Linked Life Annuity
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Flexibility: Adapt your income and investments as your needs change over time.
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Growth Potential: Participate in market growth to potentially extend the life of your retirement savings.
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Estate Benefits: Pass on the remaining capital to your heirs, ensuring your money works beyond your lifetime.
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Personalized Retirement Plan: Enjoy a retirement solution that is structured around your unique circumstances.