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:
- As a rand amount (fixed or growing at inflation / some other percentage per annum)
- 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.