JUST SAs weekly jargon buster aims to give simple, plain English explanations for typical words and phrases used in the financial industry, in particular, words relating to guaranteed life annuities and living annuities.
This week, we look at the letter: N
N Non-profit annuity A non-profit annuity is an annuity purchased from an insurer with retirement savings or voluntary funds, which pays a guaranteed, regular income for life with predetermined increases. You can choose a level life annuity (no increases), an inflation-linked life annuity where increases match CPI, or a fixed increase annuity where you choose the increase percentage. It is important to choose wisely as you cannot change the increase option once the annuity starts.The jargon buster is intended for information purposes only. It should not be regarded as advice as defined in the Financial Advisory and Intermediary Services Act 37 of 2002 or any form of advice in respect of the policy, retirement, tax, legal or other professional service whatsoever.
You are encouraged to seek advice from an authorised financial adviser or to independently decide what financial product is appropriate for you, based upon your own judgment and understanding of your financial needs.
Just Retirement Life (South Africa) Limited is a licensed life insurance company, regulated by the Prudential Authority of the South African Reserve Bank and the Financial Sector Conduct Authority as an authorised financial services provider (FSP number 46423).
