living Annuities

LIVING AND LIFE ANNUITIES

How does it work

Living annuities are products that allow for ongoing investment income from retirement savings. Annuities are where pensions (in full, or the remaining 2/3rds if a withdrawal had been made) are moved to upon retirement, with the aim of providing the beneficiary an on-going retirement income.

With a Living Annuity the investor chooses the investments (thereby assuming some risk) and set their desired income level as well as the investment strategy. The value of their return depends on the performance of the underlying investments.

A Life Annuity is similar to a Living Annuity, but the pension value is guaranteed for life at a pre-determined rate, typically more conservative (risk averse). No changes can be made to the income or investment after the initial selection.

Can E8 help?

 

We can’t.  A Living Annuity is a permanent investment, regardless of the residency status of the beneficiary. Once invested, these funds remain there until death or depleted (Living Annuity) or death (Life Annuity). Technically, a Living Annuity can be drawn down over time by withdrawing income at a higher rate than investment growth provides as a way of whittling down the capital value. The maximum rate of withdrawal is 17,5% per annum. This would be the only remaining avenue for the investor already stuck in a Living Annuity but who wants to get their funds out as fast as possible.

[Policy surrenders are sometimes possible if the investment value had fallen below certain thresholds, but there is generally little to be done about a Life Annuity. A financial advisor may be able to advise after reviewing your specific situation.]

On the other hand: if you have funds in a Retirement Annuity, we can help you to understand the conversion process, and thereafter provide all the administrative tools (information, individually tailored processes, all necessary documents) and assistance for you to cash out the RA – in full and at any age: 

  • simple: Once you understand the process the red tape is easy to navigate, and we hold your hand all the way.
  • cheap: And if you do not succeed, we will return the small fee for our service.
  • safe: We provide the tools for you to do it yourself. We do not act as intermediary, we do not ask for, nor hold, any of your personal financial information,  and there are no hidden costs.

Read more here: How will E8 assist me?