Question:
Please can you assist. My sister is going through a divorce which will be settled quite soon. She is 55yrs old and part of the settlement is a R10000 per month life maintenance. She will be due a pension payment of about R600 000 and wants to put this into a fund for her pension. What would the best option be... many thanks Peter...
Answer:
Peter, There is no such thing as the "best option", merely the optimal choice for a given set of circumstances. Finding the optimal choice would therefore require that we do a full financial needs analysis for your sister. If she wants to secure a regular income from her savings, she has the option to choose between a living or a guaranteed annuity. If she decides to go with a living annuity, then there are three important factors she news to consider: her draw-down rate, her asset mix and her fees. Find out more on our blog on choosing a living annuity. Please also use our related retirement calculator to see what income R600 000 will afford her. These two blogs should answer the key questions you may have on the subject. 10X offers a living annuity, but for a guaranteed annuity you would need to approach one of the life insurance companies.
