What Is Retirement Planning?

Retirement planning is the process of saving, investing, and managing finances to ensure a comfortable and financially secure life after stopping full-time work.

Should I Pay Off Debt Before Retiring?

Yes, aim to eliminate debt (home loans, credit cards) to reduce financial stress in retirement.

What Is the Best Age to Retire?

It depends on financial readiness, lifestyle goals, and health considerations.

How Can I Supplement My Retirement Income?

• Part-time work or consulting
• Rental income from property
• Dividend-paying investments

Can I Continue Investing After Retirement?

Yes, through:

• Living Annuities
• Unit Trusts & ETFs
• Property investments

Why Is Retirement Planning Important?

• Ensures financial independence in retirement
• Helps maintain your lifestyle post-retirement
• Prepares for unexpected expenses and healthcare costs

How Do I Protect My Retirement Savings From Market Crashes?

• Diversify investments across stocks, bonds, and cash
• Reduce risk as you approach retirement

Can I Change My Retirement Investments Over Time?

Yes, you can adjust your portfolio allocation to match your risk tolerance and retirement timeline.

What Happens to My Retirement Savings If I Die?

Your retirement savings will be distributed to your nominated beneficiaries or estate.

What Is the Maximum Lump Sum I Can Withdraw Tax-Free?

The first R550,000 of your retirement lump sum is tax-free, subject to SARS regulations.

How Do I Withdraw Money in Retirement?

• One-third lump sum (taxed) at retirement
• Two-thirds must be used to buy an annuity for income

How Can I Invest Offshore for Retirement?

• Through an offshore unit trust or ETF
• Allocating a portion of your retirement annuity to offshore assets

Should I Choose a Living or Life Annuity?

• Living Annuity: More flexibility, investment risk
• Life Annuity: Fixed income, no risk of outliving savings

What Is a Life Annuity?

A Life Annuity provides a guaranteed income for life, but funds do not pass to beneficiaries.

What Is a Living Annuity?

A Living Annuity allows you to draw an income from your savings while keeping the rest invested.

How Can I Ensure My Savings Last in Retirement?

• Stick to a sustainable withdrawal rate (4% rule)
• Maintain growth investments to outpace inflation

Can I Retire Early?

Yes, but early retirement requires:

• Higher savings to last longer
• Careful withdrawal planning

When Should I Start Retirement Planning?

The earlier, the better! Starting in your 20s or 30s allows for compound growth, but it’s never too late to begin.

How Can I Estimate My Retirement Expenses?

Consider:

• Housing & utilities
• Healthcare & medical aid
• Food, travel, & leisure activities

What Happens If I Don’t Save Enough for Retirement?

You may need to:

• Work longer or delay retirement
• Reduce expenses and adjust lifestyle
• Rely on family or government pensions

How Are Retirement Savings Taxed?

• Contributions are tax-deductible (up to 27.5% of taxable income)
• Growth is tax-free (no capital gains, dividends, or interest tax)
• Withdrawals are taxed based on SARS retirement tax tables

Can I Withdraw from My Retirement Fund Before Retirement?

• Preservation Fund: One withdrawal allowed before retirement
• Retirement Annuity: Locked until age 55

What Percentage of My Salary Should I Save for Retirement?

A general rule is to save at least 15-20% of your income, including employer contributions.

How Can I Maximize My Retirement Savings?

• Contribute regularly to retirement funds
• Increase contributions as your income grows
• Diversify investments for growth and security

What Is the Difference Between a Retirement Annuity and a Pension Fund?

• Retirement Annuity: Self-funded, flexible contributions, tax benefits
• Pension Fund: Employer-sponsored, structured withdrawals

What Are the Best Retirement Investment Options?

• Retirement Annuities (RAs)
• Preservation Funds (for previous employer savings)
• Unit Trusts and ETFs for flexibility
• Living and Life Annuities for retirement income

How Much Money Do I Need for Retirement?

It depends on:

• Your desired lifestyle
• Expected expenses (housing, healthcare, travel)
• Your investment returns and withdrawals

How Do I Get Professional Retirement Planning Advice?

Work with a certified financial advisor to develop a tailored retirement strategy that aligns with your goals.

What Role Does Medical Aid Play in Retirement Planning?

Medical expenses increase with age, so factor private healthcare costs into your retirement budget.

How Does Inflation Affect Retirement Planning?

Inflation reduces purchasing power over time, so investments must grow faster than inflation to sustain income.