Jargon buster: financial phrases simplified

Published Jun 7, 2024


JARGON buster aims to give simple, plain English explanations for typical words and phrases used in the financial industry, in particular, words relating to guaranteed life annuities and living annuities.

This week, we look at the letter: W

With-profit annuityA with-profit annuity is an annuity purchased from an insurer that pays a guaranteed, regular income for life. The annual increases applicable to this type of annuity are linked to the long-term performance of an underlying investment, typically a balanced fund. This means that when investment markets perform well, increases will be high and if they underperform, increases will be lower but they can never be less than zero (i.e negative).

Source: Just Retirement SA, [email protected].

The jargon buster is intended for information purposes only. It should not be regarded as advice as defined in the Financial Advisory and Intermediary Services Act 37 of 2002 or any form of advice in respect of the policy, retirement, tax, legal or other professional service whatsoever.

You are encouraged to seek advice from an authorised financial adviser or to independently decide what financial product is appropriate for you, based on your own judgement and understanding of your financial needs.

Just Retirement Life (South Africa) Limited is a licensed life insurance company, regulated by the Prudential Authority of the South African Reserve Bank and the Financial Sector Conduct Authority as an authorised financial services provider (FSP number 46423).