Jargon buster: financial phrases simplified for you

JUST SA’S 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: S Source: Just Retirement SA, info@ justsa.co.za.

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).

Sars

The South African Revenue Service (Sars) is the nation’s tax collecting authority. Established in terms of the South African Revenue Service Act 34 of 1997 as an autonomous agency, Sars is responsible for collecting revenue, ensuring compliance and administering the South African tax system and customs service. Sars plays a crucial role in the country’s fiscal administration.

Spouse’s annuity

Also called a joint annuity. In the event of death, a percentage of your annuity income may continue to be paid to a surviving spouse, civil partner, customary law partner or named beneficiary.

This offers stability and security, ensuring ongoing financial income following a death, but can reduce the initial starting income as more is expected to be paid over the long term.