There are basically 2 types of pensions to consider:
The Life Annuity
This is a structured pension based on the amount of money you have accumulated and your life expectancy. The product provider will offer you a pension for the rest of your life. Should you die sooner than estimated then the balance of your pension capital goes to the pool. You can take out a guarantee on your pension for a period. The longer the period the lessor the pension. If, for example, you choose 10 years, then the pension will be lower, but should you die, say in year 8, then the remaining 2 years of pension will be paid to you nominated beneficiary.
Shop around and compare rates as they vary from company to company.
The Living Annuity
This pension allows you to invest into a wide choice of funds. You decide on your pension by making a choice between 2,5% and 17,5% of the value of your fund. When you die the investment passes onto your beneficiaries. The big risk is drawing down a pension at a higher rate than the investment performance. If you achieve, say, a 10% return and draw down a 12% pension, then you effectively are eating into your capital which will result in your pension drying up a lot sooner. You need to monitor your living annuity carefully, constantly assessing the returns and the percentage drawn down.
If you are convinced that you will live longer than the average, a life annuity is probably the better consideration. The guarantees on the pension need to be studied and understood before committing. Ultimately, the life annuity provides certainty for your retirement around which you can plan more effectively. However, you essentially give the assurance company your money and compete with the statistics of life expectancy.
If you want control of your pension and are prepared to keep involved with the investment during your retirement years, then the living annuity is your better option. The pension drawn should be carefully considered along with the funds chosen. Be realistic about your expectations of returns taking costs into account as it is the net value that matters.
Depending on your total provisions available at retirement you could consider a combination of these options. A useful tool to help you get a better understanding of the dynamic can be found at www.marriot.co.za.
Your choice of pension is a very important financial decision to make and you should seek advice from a professional financial planner to help you find the appropriate solution.
Heya i am for the first time here. I came
across this board and I in finding It truly useful & it helped me out a
lot. I’m hoping to give one thing again and help others like you aided me.
wanted to thank you for this great read!! i am definitely enjoying every little bit of it i have you bookmarked to check out new stuff you post. lista de email lista de email lista de email lista de email lista de email
It is appropriate time to make some plans for the future and
it is time to be happy. I’ve read this post and if
I could I want to suggest you few interesting things or advice.
Perhaps you could write next articles referring to this article.
I wish to read even more things about it!
This site truly has all the information and facts I needed concerning this subject and didn’t know who to ask.
Hey there! I know this is kinda off topic however I’d figured I’d ask.
Would you be interested in trading links or maybe guest writing a blog article or vice-versa?
My blog discusses a lot of the same topics as yours and I think we could
greatly benefit from each other. If you happen to be
interested feel free to shoot me an email. I look forward to
hearing from you! Excellent blog by the way!
Hi to every single one, it’s genuinely a fastidious
for me to go to see this website, it consists of useful Information.
hello there and thank you for your info – I have definitely picked up anything new from
right here. I did however expertise several technical points using this web site,
as I experienced to reload the web site many times previous
to I could get it to load properly. I had been wondering if your web host is
OK? Not that I am complaining, but slow loading instances times will sometimes affect your placement in google and could damage your quality score if advertising and marketing with Adwords.
Anyway I’m adding this RSS to my email and could look out for
much more of your respective exciting content. Ensure that you update this again very soon.
I stumbled upon this via Bing. This site appears wonderful.
I just want to mention I’m very new to blogs and seriously liked this page. Very likely I’m planning to bookmark your blog . You surely have remarkable posts. Thanks a lot for revealing your web page.
I simply want to tell you that I am just very new to blogging and site-building and truly loved this blog. More than likely I’m want to bookmark your blog post . You certainly come with incredible articles and reviews. Regards for revealing your web site.
An cool post there mate . Thank you for the post !
Brilliant, cheers, I will bookmark you now.
I Am Going To have to visit again when my course load lets up – however I am taking your Feed so i can go through your blog offline. Thanks.
This website is pretty good! How did you make it !?
Brilliant, thank you, I will subscribe to you RSS soon!
I love your wordpress layout, where did you get a hold of it?
This website is extremely cool! How did you make it !?
Is it fine to put part of this in my personal website if I submit a reference to this site?
I Am Going To have to return again when my course load lets up – nonetheless I am taking your Feed so i could go through your site offline. Thanks.
This really answered my problem, thank you!
This is really a wonderful site, would you be interested in doing an interview concerning just how you developed it? If so e-mail me personally!
An insightful blog post there mate ! Thank you for posting .
Awesome post ! Cheers for, posting on my blog dude. Ill message you soon! I did not know that.
pretty useful stuff, all round I imagine this is worthy of a bookmark, thanks
Hi, I just hopped over to your webpage through StumbleUpon. Not somthing I would typically read, but I appreciated your views none the less. Thanks for creating some thing worthy of reading through.
Just discovered this blog through Google, what a way to brighten up my day!
I Am Going To have to visit again when my course load lets up – nevertheless I am taking your Rss feed so i can go through your blog offline. Thanks.
I Will have to return again when my course load lets up – nevertheless I am getting your Feed so i could go through your web blog offline. Thanks.
Mate! This site is amazing. How do you make it look this good !
A interesting blog post there mate ! Thank you for the post !
You ought to take part in a contest for one of the greatest blogs on the web. I most certainly will recommend this blog!
Just discovered this site thru Google, what a way to brighten up my month!
The design for the website is a bit off in Epiphany. Nevertheless I like your web site. I may have to use a normal web browser just to enjoy it.
Thanks for any other great article. Where else may just anyone
get that kind of info in such a perfect manner of writing?
I have a presentation next week, and I am at the look for such info.