Gender inequality follows many women into retirement because typically lower earnings translate into lower retirement savings, and women may also save for fewer years, having left paid employment to raise their children. This is compounded by the fact that women, on average, live longer than men. The fact that women typically outlive their spouses results in a gender bias for the widows of about 90% of retirement fund members who choose investment-linked living annuities to provide an income in retirement. Living annuitants choose how to invest their retirement savings and draw an income from these investments. By law you are required to draw an income of between 2.5% and 17.5% of your capital in a living annuity each year. There is no guarantee, however, that the annuity will provide your required income throughout your and your spouse's retirement as there are many risks. At a conference for the newly established South African Independent Financial Advisors Association this week, ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now