Retirees make mistake of adjusting income drawdown to inflation not to investment returns.
Many retirees are attracted to living annuities as an option once they retire. Living annuities have many advantages: they offer flexibility of investment choice, you choose how much income you want to draw within certain limits, and your investment can be bequeathed to your beneficiaries on your passing.
However, they offer no longevity protection, and it is not uncommon to read about living annuitants being left destitute and having to rely on the government or family for an income in their old age.
Proceed to Source : BusinessLive
Diversity is strength.” Nowhere is the aphorism more appropriate than in the world of investing. It is the principle that underpins Regulation 28 of the Pension Funds Act, which aims to protect people from poorly diversified portfolios by limiting how much they can invest in certain asset classes, particularly riskier ones, like equities, property and foreign assets.
Proceed to Source : Mail & Guardian
The Pension Funds Act protects citizens not only against creditors but also from themselves in that it makes certain acts or agreements in relation to pension benefits invalid.
Section 37 of the Pension Funds Act prevents pension benefits from being ceded, pledged or hypothecated, or being subjected to execution under a judgment or court order. Where a member attempts to cede, pledge or hypothecate a benefit, the fund may withhold or suspend payment.
Proceed to Source : News 24
Our labour laws are constantly evolving as the South African government seeks to balance stronger protections for employees with the need to create a business-friendly investment climate.
This means that we can expect to see a number of amendments to the country’s core labour law acts – including the Basic Conditions of Employment Act and the Unemployment Insurance Act – over the next couple of years, says Rob Cooper, tax expert and director of legislation at Sage.
Cooper outlined some of the biggest labour law changes in the pipeline, below.
Allan Greenblo, Editorial Director
The existing Pension Funds Act – running to more than 400 pages, with regulations, constantly amended – deserves to be placed in a home for the aged.
In 1956, Elvis Presley topped the hit parade with ‘Heartbreak Hotel’. On Broadway, the musical ‘My Fair Lady’ opened. Egyptian president Gamal Nasser nationalised the Suez Canal, Nikita Krushchev denounced Stalin and a Springbok rugby team toured New Zealand under management of Danie Craven.
Proceed to Source : Insurance Gateway