JUST SA’s weekly jargon buster aims to give simple, plain English explanations of 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: D
| D | Dependant | If you die and have dependants who rely on you, they may receive benefits from your pension. Pension providers and schemes may have different definitions for a dependant, but they could typically include your spouse or civil partner, your children and anyone else who may be financially dependent on you. |
| Drawdown | Drawdown or ‘income drawdown’ is an option that allows you to take income directly from your living annuity, while it remains invested.There is a danger of drawing down too much. By law, you can drawdown up to 17.5% per year but it is recommended to draw as little income as possible, closer to the region of 4%, to ensure it goes the distance as people tend to live longer, and therefore will need income to last for longer. |
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 judgement and understanding of your financial needs.
Just Retirement Life (South Africa) Limited is a licensed life 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).
PERSONAL FINANCE