Our Income Drawdown Tool

Click here to access the Income Drawdown Tool

STANLIB is proud to introduce an Income Drawdown Tool for our Equity & Linked Life Annuity and Classic Investment Plan investors. This user-friendly tool enables investors to see a breakdown of the projected gross income on their investment before making a commitment.

The tool will provide a projection of the expected cash flows when a desired income amount, the income growth rate and any fees that are charged on the investment, are entered. It will also display a graph with the investor’s projected available income and the remaining capital balance. Fees and taxes are taken into account.

Equity & Linked Life Annuities – Why the Income Drawdown Amount is so Important
Current legislation allows one to select an income level of between 2.5% and 17.5%. Investors are also able to select a wide range of investments in respect of the capital that will generate their income. The level of income they select is not guaranteed for the rest of their life and may not be sustainable if:

  • They live longer than expected with the result that the capital is significantly depleted before their death; or
  • Their return on the capital is lower than that required to provide a sustainable income for life.

It is the responsibility of the investor (in consultation with you, their financial adviser) to ensure that the income level they select will be sustainable for the rest of their life. In order to achieve this, they need to carefully manage their income drawdown relative to the investment return on their capital.

Where to Find the Tool
The tool is available on our website, www.stanlib.com (Individuals/Tools & Calculators or Advisers/ Tools & Calculators).

How to Use the Tool

  1. Open the tool
  2. Enable the macros in the tool
  3. Complete the required fields for the Investor, Financial Adviser, Investment and Fee sections
  4. Note the additional selections, e.g. Income Gross of Tax or Net of Tax
  5. Click on the Calculate button; a table with the projection of Capital, Income (Gross of Tax), Returns, Tax, Fees and Income (Net of Tax) will be displayed until age 95. A graph will also be displayed with the Capital Balance Remaining and Income Withdrawn

Once happy with the output, a proposal can be generated which includes the table and graph. You can request your clients to sign a printout of the report to keep on file.