Living annuities are income products to provide an income after retirement. Living annuities are more flexible than other retirement funds in that amounts ranging from 2.5% up to 17.5% can be withdrawn annually from the the value to cater for income needs.
Another key benefit of a living annuity is that the portfolio of investments can be changed without any penalties as your income needs change over time.
It is important to note that income changes can only be done on the anniversary of the product.
By their very nature, living annuities will not guarantee an income and the portfolio selection determines the risk. If you are looking for a guaranteed income or a fixed income product, there are income funds that have a lower risk attached them like income funds.