Abstract
The provision of sustainable retirement income remains one of the most pressing challenges in South Africa’s financial planning environment. Retirees must balance flexibility, income security, and longevity protection when selecting between post-retirement annuity products.
This study evaluated the performance of living annuities (LAs), single-life annuities (SLAs), and joint-life annuities (JLAs) over a 20-year horizon (2004 – 2024) by applying scenario-based modelling. Using historical ASISA/Morningstar return data for multi-asset portfolios, published life-annuity income rates, and inflation data from Statistics South Africa, the research constructs 18 comparative scenarios across different escalation options and investment strategies.
The results indicate that no single product is universally optimal: living annuities offer flexibility and potential for bequests but are vulnerable to market volatility and withdrawal choices, while guaranteed life annuities ensure stable income and longevity protection but lack adaptability and succession benefits.
The findings highlight the importance of prudent drawdown rules, escalation design, and financial literacy, while also highlighting the potential value of hybrid solutions to address product trade-offs.
This study contributes to the limited body of South African literature on post-retirement income strategies by providing empirical insights for retirees, financial planners, and policymakers.
Keywords: Joint-