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The retirement annuity standards have been changed in South Africa

The Financial Sector Conduct Authority (FSCA) of South Africa has issued a decree on new standards for retirement on annuities, reports Daily Maverick.
The retirement annuity standards have been changed in South Africa

The document sets the minimum pension and recommends the minimum insurance premium, which allows live comfortably in old age.

The regulator specifies various requirements for the investment policy of LICs and pension funds, for example, if a person is a pension system member by default, the PF is obliged to stick to a conservative investment policy, which will bring low returns but guarantee payments.

South Africans who choose retirement annuities will receive great social benefits from the government. In addition, the future retirees are encouraged to make alternative old-age savings, for example, hybrid annuities or products that combine funded and speculative investment for a period of 10-30 years.

The new legislation laid insurers under obligation to explain to people all the pros and cons of investment strategies and retirement policies.

Source: https://www.dailymaverick.co.za/article/2020-06-16-regulator-issues-new-draft-living-annuity-standards-for-the-second-time/#gsc.tab=0

Photos are from open sources.

 

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