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.
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.
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.
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.
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 do I do to get started?
- Complete the LifeCycle Living Annuity application form
- 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
- Send the completed application form and
supporting documentation to LifeCycle at:
- 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
- If any of the above is not clear, you can obtain further information from LifeCycle.
Contact us on:
Phone: 071 628 9722