Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Retirement peace of mind: Why one size doesn’t fit all
    Investments

    Retirement peace of mind: Why one size doesn’t fit all

    August 27, 20254 Mins Read


    The most important consideration and priority when a retiree makes decisions around approved income products for the compulsory portion of their savings is to ensure a sustainable income for themselves.

    This should rank above the wish to leave a legacy, argues Fareeya Adam, CEO of Structured Products and Annuities at Momentum Wealth. “People usually want to leave a legacy, but the most important point is: do I have enough income to sustain my standard of living for as long as I live?”

    Ultimately, retirees must remember that their unique personal circumstances, including their health, matter. And while living annuities provide flexibility, they also demand engagement and ongoing decision-making that could add unnecessary pressure during retirement.

    According to Adam, guarantee terms remain a very useful way to put a minimum on the total payout from a life annuity. “A guaranteed term is always the way to go, especially if it is added at a younger retirement age, because the cost is very small at around 60 or 65,” she says.

    Flexibility vs certainty: a false dilemma?

    Many retirees feel forced to choose between investment flexibility, offered by living annuities, and income certainty, offered by life annuities. Adam calls this an example of the Sucker’s Choice – a concept where you have to choose, despite not liking either option. It inevitably leaves the person feeling wronged.

    She advocates for a different type of flexibility than that which comes with choosing a living annuity. A hybrid option, such as the one provided by Momentum, allows both new and existing clients to switch part of their living annuity capital into a life annuity later in retirement. This offers peace of mind and postpones the final decision.

    Advice, tools, and the role of regulation

    “It is a lot to navigate on your own because there are so many factors to consider. Which one you choose is a function of your risk tolerance, your ability to stay invested, your view on your expected lifespan, etc,” says Adam. According to her, clients must be empowered to make informed decisions. And, this is where the value of financial advice is important.

    Everyone’s financial journey is unique. Momentum’s approach, captured in the phrase “Advice meets your context,” emphasises that financial planning must be personal. Your needs, dreams, and goals are different from anyone else’s, and that’s why financial advice should be tailored to your specific situation.

    In the last couple of decades, South African regulators have placed the customer and their fair treatment squarely in the spotlight, developing frameworks such as Treating Customers Fairly (TCF) and the Conduct of Financial Institutions (Cofi) legislation. The goal is to ultimately transform TCF with the advent of Cofi, helping the Financial Services Conduct Authority to entrench these principles in service providers’ conduct.

    Adam believes Momentum’s approach aligns well with fairness principles.

    Through digital simulations and comparison tools, advisers can show clients the long-term impact of choosing a level vs an inflation-linked income, in real and nominal terms. Adam emphasises: “We are taking the responsibility to make sure that clients see these types of metrics so that they understand the consequences of different choices.”

    Don’t forget the voluntary options

    Most articles around retirement decisions focus on compulsory annuities, but voluntary annuities also serve specific needs.

    For example, states Adam, for certain types of clients, voluntary term-certain or life annuities allow them to draw a guaranteed income for a set period, often used to fund a child’s education or cover a temporary income gap. These products are taxed more favourably: only the interest portion of the income is taxable, in contrast to the full income from compulsory income products.

    Informed, fair decisions matter most

    The retirement income decision is complex, deeply personal and irreversible in many cases. That’s why transparency, advice and access to meaningful comparisons are so important.

    Adam notes that the volume of decisions, from income levels to longevity assumptions, is not something most clients should face alone, and that empowering conversations and tools are essential at this stage of life.

    The day you retire should come with peace of mind, not pressure.

    Brought to you by Momentum Wealth.

    Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    JD.com’s property unit joins 2 firms in a US$1 billion Singapore Reit, sources say

    Investments

    Placing less value on property, holding on to cash: Study reveals shifting retirement mindsets in S’pore

    Investments

    China elevates infrastructure push in Tibet, aiming to raise investments on world’s roof

    Investments

    How much is Lando Norris worth? Net worth, career earnings and investments explained

    Investments

    MDGIF driving transformation in Nigeria’s energy sector through strategic infrastructure investments 

    Investments

    Deciding HOW to be paid from your retirement investments once you do retire

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Implement agricultural master plan for Northern Ghana – Women farmers urge govt

    Commodities

    Glencore Scraps London Listing Move

    Commodities

    The Commodities Feed: Oil falls ahead of Trump-Putin meeting | articles

    Editors Picks

    Gestion privée : RockFi accélère son développement avec l’ouverture d’un bureau à Lyon

    April 26, 2025

    Husband’s health scare adds perspective to Kristie Fiegen’s PUC campaign

    October 12, 2024

    Croissance des néobanques : la fin du monopole des banques traditionnelles ? – Fintech & Neobanques > Start-up

    April 8, 2025

    Why Carrington may say goodbye to bonds

    October 29, 2024
    What's Hot

    Luxury London Properties Tied to Hasina Government | UK freezes £90m worth of London properties linked to Hasina regime: report

    May 23, 2025

    inauguration de l’unité de production de Clermont-Ferrand

    May 13, 2025

    Local Government Commission approves millions in bonds for New Hanover, Pender counties

    August 6, 2024
    Our Picks

    Ain. Six Aindinois offrent un gorille en tôle au parc animalier de Saint-Martin-la-Plaine

    March 22, 2025

    What Water Utilities Need to Know About HMI Security and AI Solutions

    June 24, 2025

    UK house prices dip in February with end to stamp duty holiday, Halifax says

    March 6, 2025
    Weekly Top

    More homes for sale in UK slowing pace of price growth – Zoopla

    August 27, 2025

    Agricultural SMEs In Africa Receive Needed Funding For Growth

    August 27, 2025

    Ohio brother, sister reportedly lose over $1M in cryptocurrency investment scam

    August 27, 2025
    Editor's Pick

    Vizsla Silver progresse de 2 % alors que les travaux reprennent sur le projet Panuco au Mexique

    May 5, 2025

    La Commission espagnole accepte l’examen de la demande de Borges Agricultural & Industrial Nuts -Le 13 mars 2025 à 16:09

    March 13, 2025

    Fintech Ramp secures $22.5bln valuation in late-stage funding round

    July 30, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.