Retire for longer with the Alexforbes Living Annuity

You’ve worked a lifetime to build your retirement savings. Now let your savings work for you in retirement. Thanks to our combination of investment technology, innovative low fees and smart investment funds, the Alexforbes Living Annuity could give you more years’ worth of retirement income.

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What is a living annuity?

A living annuity is a retirement income product that lets you draw an income from your savings after retirement while the rest remains invested. This gives you flexibility over your income level and investment choices, while helping your money continue working for you in retirement.

Your income is not guaranteed for life, so it helps to choose an income amount that can last. It also helps to choose a living annuity with low fees, so more of your money stays invested and your income can last longer.

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Is a living annuity right for me?

A living annuity may be right for you if:

  • You are retiring and need an income from your retirement savings
  • You want to keep your money invested while drawing an income
  • You want flexibility to review your income level over time, within the allowed limits
  • You want more choice over how your retirement capital is invested
  • You are comfortable that your income and investment performance need to be managed carefully over time
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What makes the Alexforbes Living Annuity different?

Greater investment flexibility

Choose from a range of investment options, including portfolios with high offshore exposure, to build a retirement income solution that suits your needs.

Lower fees means better outcomes

Our ONEfee model keep costs low and transparent, so more of your money stays invested and working for you.

Track your retirement outcome

Monitor how your investment and income decisions may affect your retirement income over time, so you can stay focused on sustainability.

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Our ONEfee model could change the value of your investment

Basetana pays 78,9% less in fees with Alexforbes

Browse through some examples of how the Alexforbes Invest Living Annuity's low fees could contribute to more years of income at retirement, when compared to investments that apply a 3% p.a. fee model.

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ONEfee Important Information Profiles used are only for illustrative purposes. The examples provided compare our ONEfee to investments applying a 3% per annum fee model. These include fees for advice, administration and fund management. The results are modelled based on a historical growth rate using the asset allocation of the CoreSolutions Moderate fund. Research on fees was conducted by Alexforbes Invest internally. Past performance is not indicative of future performance. All investments are exposed to risk, not guaranteed and dependent on the performance of the underlying investments and excludes the impact of Securities Transfer Tax. Fees may change due to inflation.

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Open or transfer a living annuity

Open or transfer your living annuity through a guided online process. Manage your investment, review your portfolio and keep track of your retirement income from your phone or computer.

Why invest online?

  • Start or transfer with a guided digital process
  • Keep your retirement savings invested while drawing an income
  • Review your investment and retirement income approach online
  • Access flexible investment options for your retirement capital
  • Monitor your progress over time

Open my living annuity

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Speak to a financial adviser

If you want help deciding how much income to draw, how to invest your capital or whether a transfer makes sense, an adviser can help you make informed decisions.

When advice may help

  • You are retiring and need to set a sustainable income
  • You are transferring from another living annuity
  • You want help balancing income needs and long-term growth
  • You have broader retirement, tax or estate planning considerations

Connect with an Adviser

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The funds behind your living annuity

Our investment specialists combine funds into diversified portfolios designed to grow your retirement savings while managing risk. Each fund is rigorously researched and continuously monitored.

This gives you:

  • Institutional-quality fund selection
  • Diversification across asset classes and managers
  • Ongoing oversight from experienced investment professionals
  • Access to leading investment managers

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Need to access your retirement savings?

South Africa’s two-pot retirement system allows you to access a portion of your retirement savings before retirement, while keeping the rest invested for your future.

You may be able to withdraw from the savings component of your retirement fund if you meet the requirements. Before making a withdrawal, it is important to understand how this could affect your long-term retirement savings and the tax that may apply.

Make a two-pot claim

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Looking for something else?

Retirement annuity

Build retirement savings before you retire in a tax-efficient investment designed for long-term growth.

Learn more

Preservation fund

Keep your retirement savings invested when you leave an employer, without cashing out your benefits.

Learn more

Tax-free investment

Save for long-term goals with a tax-free investment account. Your contributions grow without tax on interest, dividends or capital gains, helping your savings grow faster over time.

Learn more

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Frequently asked questions

When will my investment policy start and how will my investment be administered?
Your policy will only start once we have received your application, it has been approved by the administrator and the contribution has been invested. The policy will end when you die, the value of your investment becomes zero or when you transfer to another living annuity. Your contributions will be invested through the administrator in one or more of the investment funds, provided by the administrator, as selected by you, with help from your financial adviser if applicable. The investments are held in your name by Alexforbes Invest on behalf of Alexander Forbes Investments Limited and will be invested through Alexforbes Invest Nominees (Pty) Ltd into the investment funds of your choice
What happens to my living annuity when I die?
When you die the remaining amount in your living annuity will be distributed to the nominated beneficiaries within a short period of time, up to a few weeks depending on administration requirements or any outstanding information. If you don’t nominate a beneficiary, the remaining amount in your living annuity will be paid to your estate and may be subject to estate duties and executor fees. Your beneficiary details must be kept up to date. You can keep them up to date by logging into your dashboard or through your appointed financial adviser if you have one
What is the minimum amount I can invest in the Alexforbes Invest Living Annuity?
We currently require a minimum initial investment of R300 000 to start your Living Annuity.
How do taxes impact my living annuity?

Every time you withdraw money from your living annuity, the administrator will hold back an estimate of taxes due and will pay the balance to you. This type of tax is known as income tax or Pay As You Earn (PAYE).

All the investment growth, income or capital gains are free of tax inside the Alexforbes Invest Living Annuity.

Under what circumstances can I withdraw the value of my living annuity in cash?
If the value of your living annuity is less than the regulated amount as set out in legislation (currently R125 000) you can withdraw the full amount less any applicable income tax.
Can I convert my Alexforbes Invest Living Annuity to a conventional life annuity?

In some instances, you may decide that you would prefer the safety of a fixed income for the remainder of your life. To achieve this, you are able to convert your existing Alexforbes Invest Living Annuity to a life annuity. However, once you have converted your living annuity to a life annuity, you may not convert it back. If you would like to know more about this, please get in touch with your financial adviser, if applicable, or call Alexforbes Invest to discuss this in more detail.

The Alexforbes Invest Living Annuity is underwritten by Alexander Forbes Investments Limited, a licensed insurer and FSP.

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