Managing your retirement income is no easy task

Managing your income from a living annuity is far more difficult than managing your retirement investments during your working life, and many financial advisers, because their expertise is more geared to investing than to “disinvesting”, may not be up to the task of advising you properly.

Marc Thomas, the client outcomes and product research manager at Bridge Fund Managers, who spoke recently at the opening forum of the South African Independent Financial Advisers’ Association, says that, with the huge swing towards living annuities (and away from guaranteed, or life, annuities – see “Definitions”), there is a need for specialist advice on income strategies for retirees.

He says the advice industry has largely not made a distinction between pre-retirement and post-
retirement advice, with advisers simply “copying and pasting” from one mode to the other. In fact, so specialised is the field of post-retirement advice that there is a new professional certification in the United States: that of Retirement Income Certified Professional.

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