JUST SA’s weekly jargon buster aims to give simple, plain English explanations for typical words and phrases used in the financial industry, in particular, words relating to guaranteed life annuities and living annuities.
This week, we look at the letter: P
| Prudential Authority | The Prudential Authority is a regulatory body who issues operating licenses to insurance companies. It is responsible for regulating and supervising insurance companies in South Africa. The South African Prudential Authority forms part of the South African Reserve Bank (SARB) and was established in April 2018 to ensure the stability and soundness of the local financial system in terms of the Twin Peaks Regulatory Model. |
| Pension or retirement fund | This is a fund built up over time from contributions made to pension/retirement funds. At retirement your pension/retirement funds are used to purchase a post-retirement income product, typically a life annuity or a living annuity. There is normally an option to take up to one third of the fund as a cash lump sum at retirement. |
Source: Just Retirement SA, [email protected].
The jargon buster is intended for information purposes only. It should not be regarded as advice as defined in the Financial Advisory and Intermediary Services Act 37 of 2002 or any form of advice in respect of the policy, retirement, tax, legal or other professional service whatsoever.
You are encouraged to seek advice from an authorised financial adviser or to independently decide what financial product is appropriate for you, based upon your own judgment and understanding of your financial needs.
Just Retirement Life (South Africa) Limited is a licensed life insurance company, regulated by the Prudential Authority of the South African Reserve Bank and the Financial Sector Conduct Authority as an authorised financial services provider (FSP number 46423).
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