JUST SA’s weekly jargon buster aims to give simple, plain English explanations of 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 C:
| C | Consumer Price Index (CPI) | This is a commonly used measure of inflation in South Africa, published by Statistics SA. CPI does not measure how individual households spend their money or experience inflation, it is an estimation of spending of all South African households. CPI measures the change in prices of a pre-determined basket of retail goods and services over time. |
| Cooling off period | A period that must pass following the purchase of a financial product before an agreement becomes final. The purchaser may choose to cancel the purchase, for any reason, and obtain a full refund within the cooling off period. Life annuities generally do not have a cooling off period so the decision to purchase one must be well thought through, and where possible discussed with a financial professional. |
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 upon your own judgment and understanding of your financial needs.
Just Retirement Life (South Africa) Limited is a licensed life 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).
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