First for the professional personal financial adviser
30 SEPTEMBER 2025 R69.95 INCL VAT
www.moneymarketing.co.za
RETIREMENT Life annuities are a key tool for advisers, balancing certainty and growth in retirement planning. We examine why your clients need to understand the importance of this type of investment. Cover story + Pg 17-18
CRYPTOCURRENCY As cryptocurrency continues its move into mainstream investing, this month we’re looking at tokenised stocks; how stable coins can help to build financial inclusion; and the latest regulations. Pg 8-11
TRANSFORMATION Beyond compliance, transformation builds competitiveness and trust, ensuring relevance in South Africa’s economy. Some key industry players share their strategies in this respect. Pg 14-16
NATIONAL WILLS WEEK Too many South Africans die without valid wills, leaving families exposed, which is why advisers should use this opportunity to stress wills’ value. Pg 20-23
TRUSTS Trusts safeguard assets, enhance estate planning and support wealth transfer across generations. However, they are no longer as straightforward as they once were. It’s essential that clients remain informed.
Image: www.shutterstock.com
Pg 24-25
@MMMagza
Why life annuities matter more than ever for South African retirees By Sandy Welch
Editor, MoneyMarketing
I
n the wake of increasing retirement pressures and soaring living costs, the importance of life annuities has re-entered the spotlight in South Africa – and for good reason. According to Deane Moore, CEO of Just SA, now is the best time in two decades for retirees to seriously consider this essential retirement product. “The combination of strong recent performance of balanced funds, growing retiree investment values, and South Africa’s high long-term interest rates – relative to what we’ve seen in the last 20 years – is making it an attractive time to lock in guaranteed income for life,” Moore explains. “Even though rates have pulled back slightly from their peak, they remain historically high, which directly translates into high annuity rates for retirees.” As South Africa’s retirement landscape continues to shift, the urgency around life annuities has never been greater. With the first wave of living annuity investors now living longer than the average 20-year retirement span, the cracks in the system are starting to show. Life annuities offer something many retirement products struggle to guarantee: peace of mind. A crisis in waiting – and a call to action Moore says there has been a growing realisation among advisers and retirees alike that many South Africans simply don’t have enough saved to support themselves throughout retirement. “About 95% of South Africans retire without sufficient savings,” he notes. “Many end up in living annuities, which means they must manage their own investments and withdrawals, and far too many are drawing unsustainable levels of income. “We are now entering the phase where we’ll see the people who live longer than average starting to
run out of money,” says Moore. “We’re seeing the early signs of a crisis, but I think we’re going to see that crisis manifest significantly in the next five to 10 years.” The picture he paints is stark: a proud generation who, having spent a lifetime saving and working, now face the distressing prospect of financial dependency in old age, often having to turn to their adult children for support. And those adult children? They’re already stretched thin, juggling their own financial responsibilities, supporting kids, and now potentially their parents too. Life annuities vs living annuities: What’s the catch? From Just SA’s research, two-thirds of retirees in living annuities are drawing down at rates that could deplete their capital. But here’s the silver lining: “Roughly half of those people could secure the same income level they’re drawing now by moving part of their assets into a life annuity, and have it guaranteed for the rest of their life, with increases that target inflation,” Moore says. This is precisely where life annuities offer a vital solution – not just for the individual retiree, but for families and the broader financial system. A life annuity ensures income that lasts as long as a person lives. Unlike a traditional living annuity, where individuals must decide how much to draw each year and shoulder investment risk, a life annuity pools that risk and relies on the expertise of insurers to manage it. And while misconceptions around handing over a lump sum to an insurer persist, Moore is quick to dispel them. “Firstly, it’s not all of your clients’ money, it’s just the bit that they are definitely going to need for essential expenses in retirement,” he says. “And it is pooled with all other clients, so everyone gets an income for as long as they live. Once people understand that, it makes a lot more sense.”
WANT MORE VALUE FROM YOUR INBOX?
Scan to subscribe to our weekly newsletters. Continued on next page
Image: Getty Images
WHAT’S INSIDE YOUR SEPTEMBER ISSUE:
@MoneyMarketingSA