Many retirees are attracted to living annuities as an option once they retire. Living annuities have many advantages: they offer flexibility of investment choice, you choose how much income you want to draw within certain limits, and your investment can be bequeathed to your beneficiaries on your passing. However, they offer no longevity protection, and it is not uncommon to read about living annuitants being left destitute and having to rely on the government or family for an income in their old age. Consider some key principles that may help ensure you don’t outlive your living annuity. The level of initial capital used to invest in the living annuity is vital. The best way to make sure you have sufficient capital with which to purchase a living annuity is to make sure you are saving enough on a consistent basis over the correct timeframe and are invested in the appropriate asset allocation. When you resign from your employer, don’t withdraw retirement fund benefits but rather pre...

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