“Life annuity rates have increased by 10-15% since the beginning of the year, which offsets the reduction in market values most people in or close to retirement have experienced in the recent market crash,” Just, a financial services firm specialising in retirement income solutions highlights in a recent media release.
Just points out that individuals are currently able to get a higher income from each Rand of their retirement capital if they invest it in a life annuity today than they were three months ago – in fact 10-15% higher. This is because bond yields have increased significantly. However, this window of opportunity won’t last forever.
The increase in bond yields is driven by a number of factors, including investors’ aversion to risk since the market crash in early March and the ongoing COVID-19 pandemic.
Whether a person is approaching retirement right now, or already retired, a life annuity will insure you a guaranteed income for life, an option that for many investors probably seems very attractive right now.
Deane Moore, CEO of Just explains further.
