{"id":862671,"date":"2026-06-05T14:20:14","date_gmt":"2026-06-05T12:20:14","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=862671"},"modified":"2026-06-05T14:20:16","modified_gmt":"2026-06-05T12:20:16","slug":"why-settle-on-one-solution-when-you-can-have-the-best-of-both","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/862671\/why-settle-on-one-solution-when-you-can-have-the-best-of-both\/","title":{"rendered":"Why settle on one solution when you can have the best of both?"},"content":{"rendered":"\n<p>The decision between a life annuity and living annuity is a big one as you step into retirement.&nbsp;<\/p>\n\n\n\n<p>This choice will shape your financial well-being throughout your retirement, and it is important for you to know the difference between these solutions.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/bit.ly\/4uh1sPF\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to learn how Glacier can give you the best value from both life and living annuities.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Each option offers different benefits, risks, and there are some trade-offs \u2013 and the right choice will depend on your unique needs, goals, and financial priorities.&nbsp;<\/p>\n\n\n\n<p>Also, a combination of both solutions supports optimal income in retirement, the importance of which cannot be overstated.<\/p>\n\n\n\n<p>But first, let\u2019s explore each option in detail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Life annuity &#8211; a guaranteed income for life&nbsp;<\/h2>\n\n\n\n<p>A <strong><a href=\"https:\/\/bit.ly\/43eG5DI\" target=\"_blank\" rel=\"noreferrer noopener\">life annuity<\/a><\/strong> offers the security of a guaranteed monthly income for the rest of your life.\u00a0<\/p>\n\n\n\n<p>It\u2019s a \u201cset-and-forget\u201d solution, where the insurer takes on the longevity risk, which means you cannot outlive your income.&nbsp;<\/p>\n\n\n\n<p>This makes it an attractive choice for those who value certainty and financial stability.<\/p>\n\n\n\n<p><strong>Key benefits:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It offers a guaranteed income for life, unaffected by market fluctuations.<\/li>\n\n\n\n<li>You\u2019ll have protection against inflation if you select an income escalation option.<\/li>\n\n\n\n<li>The solution is backed by long-term bonds, offering attractive rates in a high-bond-yield environment.<\/li>\n<\/ul>\n\n\n\n<p>Additional options include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Adding a second life insured to whom the income continues to be paid at your death<\/li>\n\n\n\n<li>Choosing a guaranteed term during which the income continues to be paid in the event of your death.<\/li>\n<\/ul>\n\n\n\n<p>The limitations of a life annuity are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is no flexibility in this solution \u2013 once the annuity is set up, it cannot be changed.<\/li>\n\n\n\n<li>There\u2019ll be no capital payout at death. However, if a guaranteed term or second life insured is selected, income can continue to your loved ones. A lump sum is available if you choose optional life cover.<\/li>\n\n\n\n<li>The solution only offers inflation protection if, at inception, you selected annual income escalation. If not, your purchasing power may decline over time.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Living annuity &#8211; flexibility and control<\/h2>\n\n\n\n<p>A <strong><a href=\"https:\/\/bit.ly\/4vz3g7T\" target=\"_blank\" rel=\"noreferrer noopener\">living annuity<\/a><\/strong> provides retirees with greater control over their investments and income.\u00a0<\/p>\n\n\n\n<p>You choose how your funds are invested and how much income to draw each year (naturally, within regulatory limits).&nbsp;<\/p>\n\n\n\n<p>It also allows you to leave any remaining capital to your beneficiaries.<\/p>\n\n\n\n<p><strong>Key benefits:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You have income flexibility \u2013 you can adjust your retirement income annually based on your needs.<\/li>\n\n\n\n<li>You have investment choice \u2013 select and switch between underlying funds as you need to.<\/li>\n\n\n\n<li>The solution offers legacy planning \u2013 the remaining capital after your death, is passed to your beneficiaries.<\/li>\n\n\n\n<li>There is potential for capital growth through market exposure.<\/li>\n<\/ul>\n\n\n\n<p>The limitations of a living annuity are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your income is not guaranteed for life \u2013 you bear the risk of outliving your savings.<\/li>\n\n\n\n<li>Your income is affected by market performance and inflation.<\/li>\n\n\n\n<li>This solution requires active management and ongoing financial advice.<\/li>\n\n\n\n<li>There is the risk of capital erosion if drawdowns are too high or the underlying investments underperform.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A combined approach provides you with the best of both worlds<\/h2>\n\n\n\n<p>Blending a <strong><a href=\"https:\/\/bit.ly\/4uh1sPF\" target=\"_blank\" rel=\"noreferrer noopener\">life annuity with a living annuity<\/a><\/strong> offers a powerful solution that balances certainty and flexibility.<\/p>\n\n\n\n<p>What you\u2019ll achieve by combining these two solutions to create your retirement income:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stability<\/strong> \u2013 you\u2019ll have a guaranteed income from the life annuity component.<\/li>\n\n\n\n<li><strong>Flexibility and growth<\/strong> \u2013 you\u2019ll be able to adjust your income and there is potential for capital growth from the living annuity component.<\/li>\n\n\n\n<li><strong>Protection against longevity risk<\/strong> (the risk of your money running out), as the guaranteed income continues for life.<\/li>\n\n\n\n<li><strong>Legacy opportunities<\/strong>, with any remaining funds in the living annuity passing to your beneficiaries.<\/li>\n\n\n\n<li><strong>Options to protect loved ones<\/strong> through joint-life coverage or guaranteed income payment terms.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">There is no one-size-fits-all solution<\/h2>\n\n\n\n<p>When it comes to retirement income planning, you, your needs and circumstances need to be at the centre of your chosen solution.&nbsp;<\/p>\n\n\n\n<p>Each option &#8211; life annuity, living annuity, or a combination of the two &#8211; offers distinct advantages,&nbsp;<\/p>\n\n\n\n<p>Therefore, it\u2019s crucial to work with an authorised financial adviser who can help you build a strategy that balances income certainty, investment flexibility, longevity protection and legacy planning.<\/p>\n\n\n\n<p>Find out more about <strong><a href=\"https:\/\/bit.ly\/3RMYNzK\" target=\"_blank\" rel=\"noreferrer noopener\">Glacier\u2019s retirement income solutions<\/a><\/strong> and speak an authorised financial adviser to help make these important decisions.\u00a0<\/p>\n\n\n\n<p>Your retirement is your future. Make sure it\u2019s well-planned, well-protected, and aligned with your life goals<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/bit.ly\/4uh1sPF\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to learn how Glacier can give you the best value from both life and living annuities.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">About Glacier by Sanlam<\/h2>\n\n\n\n<p>Glacier by Sanlam is your trusted partner in unlocking infinite investment opportunities.&nbsp;<\/p>\n\n\n\n<p>As the largest linked investment service provider, we have led the way in meeting the diverse needs of South Africans since 1997.&nbsp;<\/p>\n\n\n\n<p>Our extensive range of local and international solutions empowers investors to create, grow, and preserve their wealth.&nbsp;<\/p>\n\n\n\n<p>Through innovative products and expert advice, we offer infinite opportunity to achieve financial success.<\/p>\n\n\n\n<p>Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.<\/p>\n\n\n\n<p>Sanlam Life Insurance Ltd is a licensed life insurer, financial services and registered credit provider (NCRCP43).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How combining a life annuity with a living annuity helps to create optimal retirement income. <\/p>\n","protected":false},"author":57,"featured_media":862676,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[13071,25554,25555],"class_list":["post-862671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-glacier-by-sanlam","tag-life-annuity","tag-living-annuity"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=862671"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862671\/revisions"}],"predecessor-version":[{"id":862677,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862671\/revisions\/862677"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/862676"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=862671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=862671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=862671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}