Investment call key to security for widows
'Last survivor' in living annuity may face a battle during the lower end of returns cycle
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, ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.