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What is a Living Annuity?

What is a Living Annuity?

A Living Annuity is a financial product that provides you with a regular income after retirement. When you retire from your Pension, Provident, or Retirement Annuity funds, you can invest a portion of your savings in a Living Annuity and choose the income you wish to receive. You can choose how much income you want to receive each year, and you can change your income amount once a year (subject to regulatory limits - (currently you cannot withdraw less than 2.5% or more than 17.5% of the total annuity value).

How do I activate my Living Annuity Account?

You must be at least 55 years old to activate your living annuity account. Simply send a request to our Retirement team at, and they will assist you.

What are my Living Annuity Options?

Upon retirement, you have the option to take a cash lump sum if it's equal to or less than R247,500. The cash lump sum cannot exceed one-third of your total benefit, with the remaining two-thirds going into your Living Annuity Account. Taxes will apply to the cash lump sum based on legislation.

How much income can I withdraw from my living annuity?

You can withdraw between 2.5% and 17.5% of the value of your living annuity annually, which can be paid monthly, quarterly, semi-annually, or annually. The amount you withdraw is subject to tax. It is important to choose an income amount that you can afford to withdraw without depleting your capital too quickly.


With a Living Annuity, you have the flexibility to choose how to invest your funds. There are no constraints like with other retirement funds. Once you open your Living Annuity account on EasyEquities, you can access various local investment options, including shares, ETFs, unit trusts, and bundles.

How is my annuity income paid?

Your annuity income is paid into your designated bank account on the 25th of each month (as per the frequency you selected at the policy's inception and on every Anniversary Date thereafter). If there is not enough money in your account to cover your annuity income, you may sell your investments according to your preferences by the 20th of the month.

Funding the Living Annuity Account

Living Annuities can receive funds from retirement funds or other Living Annuities. You can transfer your Living Annuity from one provider to another. You can adjust your income percentage or amount once a year, starting from the inception date, but you cannot change it within the same year. 

How do I change the amount of my annuity income?

You can change the amount of your annuity income once a year. To do this, you will need to complete and sign an annual review form. The form must be submitted to EasyEquities by the 10th day of your anniversary month.

Who are my beneficiaries?

You are required to nominate beneficiaries on your living annuity. Your beneficiaries will receive the proceeds of your living annuity when you die. If you do not nominate beneficiaries, the proceeds will be paid to your estate.

Can I change beneficiaries?

Only the policyholder can nominate beneficiaries. Nominations signed by anyone else will not be valid. This nomination will replace all previous nominations on record. You can obtain the necessary form from this link or by emailing

Do I pay tax when transferring to a living annuity?

There is no tax payable on the amount you transfer from your retirement fund to your living annuity. However, if you withdraw a cash lump sum from your retirement fund, you may be liable to pay tax on the lump sum.

How much tax do I pay if I choose to cash up the benefit before transferring to the account?

The amount of tax you pay on a cash lump sum withdrawal from a retirement fund depends on your income tax bracket. You can use the SARS tax calculator to estimate the amount of tax you will pay.

What are the costs associated with a living annuity?

There are a number of costs associated with living annuities, including:

  • Management fees
  • Administration fees
  • Fund fees
  • Tax

Refer to our Living Annuity cost profile for information about associated costs. You can find the cost profile here.

Can I make a withdrawal from my living annuity account?

You can only make a withdrawal from your living annuity account if the market value of the account is less than or equal to R125,000. To make a withdrawal, you will need to contact EasyEquities and request a withdrawal form (Please email the retirement team at for assistance).

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