Main features

The income is payable until the death of the pensioner.

Although no capital remains after death, you can ensure that the pension is payable for at least a specific number of years by choosing a guaranteed term initially.  This means that if you for instance choose a guaranteed term of ten years, and you die in the seventh year of your life annuity plan, the income will still be paid for another three years to the person you nominate as beneficiary.  This will be to the financial advantage of your beneficiaries if you die soon after retiring.  However, it should be noted that this option would leave you with a smaller initial pension.

Income guarantees

Your income level is guaranteed and cannot be influenced by decreasing interest rates.  You can also ensure that a child who will still be dependent on you for a number of years will receive an income after your death even if you die within the guaranteed period.  You can choose guaranteed terms of between 5 and 15 years.

Annual increases

You can choose to pay yourself an annual increase of 5%, 10% or 15%.  Or if you choose the Bonus life annuity, Sanlam declares an annual bonus rate by which your pension will increase to help counter the effects of inflation.

Do you want to spend all your capital during your own lifetime?

Our life annuities and Bonus life annuity ideally suit anyone who wishes to make maximum use of all their available capital.  By not specifying a guaranteed term, the pension ceases at death.  You will start out with a larger pension initially than if a guaranteed term had been selected.

Joint life annuities

Main features

This plan is designed for both you and your spouse or partner to hold jointly.  The income is payable to you and your spouse or partner, until the death of the survivor.  If you choose a guaranteed term, you can also ensure that the income is still paid to another dependant after your death if you die during the guaranteed term.

You also have the option to reduce the income payable after the death of the first-dying, should a smaller income be required.

Income guarantees

The income level is guaranteed and is not influenced by decreasing interest rates or stock market fluctuations.

Annual increases

You can choose to pay yourself an annual increase of either 5%, 10% or 15%.

Investment tips

It is important to consider your personal position before you make a decision concerning your investments, as your financial needs, tax obligations, income and assets will change after retirement.

Tax implications

Your pension

The income you receive from your life- or bonus annuity are fully taxed at the tax rate applicable to the income the pension provides.

Tax on amounts payable to your beneficiaries after your death

Estate duty

No estate duty is payable.

Explanation of Terminology

Life Annuity

Life annuity pays you a regular amount until the day you die.  When you die the payments stop.  No money is passed on to your heirs.

Level annuity

You will receive the same amount every month for the period of the annuity.

Joint and survivorship annuities

If you are married or in a common-law relationship, you can buy a pension that continues to be paid until the last person in the relationship dies.

Guaranteed term

The pension is guaranteed for at least a fixed period.  If you die during this period the pension will be paid until the end of the guaranteed period, when it will stop.  However, if you survive the guaranteed term, your pension will be paid until your death.

Contact us

Would you like to know more?  Speak to your Sanlam adviser or your broker, or contact us at 0860 000 121.  We will put you in touch with someone who can prepare a total retirement plan for you.