living annuity

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LifeCycle

LIVING ANNUITY

What is the LifeCycle Living Annuity?

The LifeCycle Living Annuity is an investment-linked annuity policy underwritten by 27four Life Limited. A living annuity pays you an income in retirement and is suitable for retirees who do not want to purchase a guaranteed life annuity or a with-profits annuity.

Product Summary

The LifeCycle Living Annuity can be purchased with a retirement benefit, or, with a transfer from another living annuity. With a living annuity, you are able to choose how you would like your retirement benefit to be invested.

Product Summary

You are also able to choose the level of income that you would like to draw from your living annuity. You can choose to draw an income in two dierent ways:

  1. As a rand amount (fixed or growing at inflation / some other percentage per annum)
  2. As a percentage of your capital at the start of each year e.g. 5% of your retirement capital

Whether you choose option 1 or option 2, the income that you specify must be between 2.5% and 17.5% of your retirement capital, by law.
You can specify the frequency of your income payments (monthly, quarterly, bi-annually, annually) and you are able to adjust your income level on an annual basis on the anniversary of your investment in the annuity.
You can specify the frequency of your income payments (monthly, quarterly, bi-annually, annually) and you are able to adjust your income level on an annual basis on the anniversary of your investment in the annuity. The income that you receive will first be taxed according to prevailing pensioner PAYE tax rates.
You may transfer your existing living annuity to LifeCycle, and there will be no penalties should you wish to transfer your living annuity from LifeCycle to another provider.
In the event of your death, the value of your death benefit will be your remaining investment value. Your nominated beneficiaries will receive a benefit in the proportions set out on the beneficiary nomination form.

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Why, How Much and How?

Why LifeCycle Living Annuity?

The LifeCycle Living Annuity provides you with a low cost, flexible retirement income product which is easy to understand. The LifeCycle Living Annuity will give you access to a range of investment options with exposure to all the relevant asset classes to diversify your investment holdings.

Why LifeCycle Living Annuity?

What is it going to cost me?

You will pay an on-going administration fee which depends on the size of your investment. All fees are quoted as a percentage of assets under management on an annual basis.
27four Life Limited has outsourced certain administrative functions to D and D the Cycle (Pty) Ltd and their fee is inclusive of the administration fee reflected above.
The on-going administration fee includes all the costs apart from the expenses associated with the management of the investments.
The investment management costs are shown in the Fund Fact sheets.
LifeCycle does not charge initial fees when you purchase a living annuity or switching fees should you decide to switch your underlying investment options.

What is it going to cost me?

What do I do to get started?

  1. Complete the LifeCycle Living Annuity application form
  2. Compile the following supporting documentation:
    • ID document containing a photo, full names, date of birth and ID number, valid passport or a valid driver’s licence
    • A document no older than three months containing residential address that is a utility bill, bank statement, rates account or tax invoice
    • Proof of banking details
    • Proof of SARS registration
  3. Send the completed application form and
    supporting documentation to LifeCycle at:
  4. The administrator of the fund will provide you with the following:
    • Online access to the administration system to view your account where you can view all transactions processed on your account from inception and for any period
    • A transaction confirmation statement and a
      policy document
  6. If any of the above is not clear, you can obtain further information from LifeCycle.

Contact us on:
Email: life@27four.com
Phone: 071 628 9722

What do I do to get started?

Get In Touch!

071 628 9722

lifecycle@thecycle.co.za

www.thecycle.co.za

Additional Resources

Disclosures
The LifeCycle Living Annuity product is underwritten by 27four Life Limited. The assets in this policy will be kept separate from other
assets and liabilities underwritten by 27four Life Limited. The benefits oered under the LifeCycle Living Annuity are linked to the
investment returns achieved. Neither the investment returns nor the benefits oered are guaranteed. 27four Life Limited has outsourced certain aspects of the administration function to D&D The Cycle (Pty) Limited (Reg. No: 2013/157477/07) who is also an approved retirement benefit administrator (reference number 24/767) and an approved Financial Services Provider (FSP NO 45863. The current investment options available to policyholders are selected Collective Investment Schemes in Securities (CISs), selected fund policies and approved external funds, inclusive of PSP’s with your preferred asset manager, which are managed and administered by approved third party managers and administrators. The value of units may go down as well as up and past performance is not necessarily a guide to the future. A living annuity allows you to set your income level subject to constraints imposed by the authorities from time to time and allows you to select a wide range of investments in respect of the capital that will generate the annuity. The level of income you select is not guaranteed for the rest of your life. The level of income you select may be too high and may not be sustainable if (1) you live longer than expected with the result that the capital is significantly depleted before your death; or (2) the return on the capital is lower than that required to provide a sustainable income for life. It is your responsibility (in consultation with your financial advisor) to ensure that the income that you select is at a level that would be sustainable for the rest of your life. You need to carefully manage your income drawdown relative to the investment return on the capital in order to achieve this.

This guide has been compiled to provide factual information on the product oered and does not constitute advice.  27four Life Limited is a Financial Services Provider authorised under the Financial Advisory and Intermediary Services Act of 2002 (FSP 31045). D and D the Cycle (Pty) Ltd is a Financial Services Provider authorised under the Financial Advisory and Intermediary Services Act of 2002 (FSP 32968) D and D the Cycle (Pty) Ltd is a Financial Services Provider authorised under the Financial Advisory and Intermediary
Services Act of 2002 (FSP 45863).

Disclosures

D and D The Cycle Pty(Ltd)

13B Administrator 24/767
Authorised Financial Services Provider
FSP no: 45863

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