Life annuity

If you are retiring and want the peace of mind of a guaranteed income throughout retirement, now might be a good time to purchase a guaranteed life annuity.

Currently, a 60-year-old can get over R9,000 per month for a R1 million investment in a level annuity guaranteed for life. This translates to a return of roughly 10.8% per year. A drop of only 1% in the bond yields would result in an income that is almost 10% lower.

The benefits of a life annuity include:

• An income that is guaranteed for life and not affected by movements in the markets
• You can choose a term (5, 10, 15 or 20 years) over which the income will be guaranteed to be paid, even if you pass away
• If you want to protect your income against inflation, you can choose to increase your income by a certain percentage every year or opt for an inflation-linked annuity

Glacier Cash Option

If you want to make your money work for you and take advantage of the current returns offered, but you still need the flexibility to withdraw funds when needed, you may want to invest in the Glacier Cash Option. This investment solution is cost-effective, low-risk and geared to achieve inflation-beating returns.

Some things to note:

• A minimum investment amount of R100,000 is required
• You have the flexibility to withdraw or transfer your money to any other Glacier product at any time
• A select range of top-cash and income funds are available to choose from

In all investing, the value of a professional financial adviser cannot be over-emphasised. They take a holistic view of your personal finances – your income, expenses, needs, shortfalls, risk appetite and goals. If you already have one, that’s a big tick on your financial planning checklist! A good adviser becomes a coach and partner in your journey to financial fitness. So, before making any investment decisions, consult an appropriately authorised financial adviser.