Retirement annuities are a type of investment that you can make to ensure that you have enough money in your retirement. If you are not sure what an annuity is, we will explain it to you.
An annuity is a contract between two parties – the purchaser and the provider. The purchaser pays a lump sum for an agreed amount of time and in return, the provider will give them a regular income for their lifetime or until they die.
In South Africa, there are different annuities, and each one has its own pros and cons. We will go over some of those types below:
Annuities: The first type of annuity is the immediate annuity. This type of annuity is paid out to the person who has purchased it over time and there are no future payments due. There are two types of immediate annuities, fixed and variable. With a fixed immediate annuity, you will receive your payments until you die or until a certain age. With variable immediate annuities, the amount goes up or down depending on the market.
Can I withdraw my retirement annuity in South Africa?
A retirement annuity is an investment product that provides an income for life. It is designed to provide a regular income during retirement, and it typically starts as soon as the annuitant turns 65.
Withdrawal of a retirement annuity in South Africa can be done under certain conditions, but it will depend on the type of annuity policy that you have. There are two types of retirement annuities: fixed and variable. A fixed income will provide a guaranteed amount of income until you die while the variable will change depending on market conditions.
