Startling new estimates show that about 59 000 people - more than 20% of all retirees drawing a pension from the favoured South African pension product, the living annuity - are now drawing half the income they were receiving six years ago in after-inflation terms. The estimates are the work of Deane Moore, an actuary and CEO of Just South Africa, a company that provides retirees' least-favoured choice of pension - the annuities that guarantee your income. However, the Association for Savings and Investment South Africa, which represents life and investment companies that provide living annuities, has labelled Moore's estimates "dangerous". Nine out of 10 retirement fund members choose to invest their retirement savings from an employer-sponsored retirement fund or retirement annuity in investment-linked living annuities at retirement. These pension products allow you to choose the underlying investments, but you take the investment risk and the risk that you may outlive your saving...

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