What is an annuity?

Pension fund and retirement annuity fund members are obliged to purchase an annuity with two-thirds of their savings at retirement. In return for your investment, you receive a monthly pension.

You can choose a guaranteed or life annuity that pays a predetermined income for the rest of your life.

Alternatively, you can invest in a living annuity, choosing the investments and taking your chances on the returns you will earn.

You may draw an income of between 2.5% and 17.5% a year from your investments.