No easy answers when valuing living annuities at divorce
Courts and practitioners face contested valuation methods – from present-value drawdowns to post-death capital – with tax and drawdown assumptions driving outcomes.
#drawdownrate
Average living annuity drawdown rate drops below 6% for the first time since 2011
Strong market returns and rising balances have prompted many retirees to reduce withdrawals – a trend ASISA encourages annuitants to maintain.
Average living annuity drawdown rate lowest in five years
The marginal decrease in the average drawdown rate is noteworthy because it occurred in an environment of rising living costs, says ASISA.
Research points to the need for regular reviews to ensure a living annuity will last
Simply setting an initial low percentage drawdown and hoping for the best is unlikely to result in a stable income in real terms, ASSA finds.
