A Complete Retirement Guide

Retirement planning goes beyond simple saving; it’s about creating a secure, lifelong foundation that supports you now and in the future. A strong plan helps you build wealth throughout your career and ensures income stability in retirement.

💡Did you know you can transfer Living Annuities, Preservation Funds or Retirement Annuities?

Whether you’re just starting or nearing retirement, sound financial choices today can lead to a comfortable retirement tomorrow. Use our Retirement Calculator to get started.

Retirement Calculator

Key Retirement Vehicles

To maximize your retirement savings, it’s essential to understand different options, including Retirement Annuities, Preservation Funds, Pension Funds, and Provident Funds.

Each has its unique tax benefits, structures, and role in a comprehensive retirement plan:

A) Retirement Annuity (RA):

An RA is a personal retirement savings product, independent of your employer, with tax-deductible contributions that reduce your taxable income.

Invested across various asset classes, an RA grows over time, and upon retirement, it can be converted into a Living Annuity or a Guaranteed Life Annuity to generate income.

B) Preservation Fund:

Designed to protect savings when leaving an employer, a Preservation Fund lets you transfer Pension or Provident Fund balances without taxes.

It allows one pre-retirement withdrawal for emergencies, while the remaining funds grow tax-efficiently for future income.

C) Pension Fund:

Typically employer-sponsored, Pension Funds receive contributions from both you and your employer. By law, two-thirds of these savings must fund an annuity at retirement, ensuring a stable retirement income.

Pension Funds are tax-efficient, encouraging consistent savings throughout your career.

D) Provident Fund:

Like a Pension Fund, but with added flexibility, Provident Funds allow full lump-sum withdrawals at retirement or the option to purchase an annuity.

This flexibility, combined with tax advantages, makes Provident Funds attractive for those seeking customizable retirement savings.

E) Converting Retirement Savings to Income

As retirement approaches, your accumulated savings can be converted into generating income:

• Living Annuity: Flexible and investment-focused, allowing you to adjust income levels and maintain control over investments.
• Guaranteed Life Annuity: Provides a fixed, secure income for life, removing market risk—a choice for those seeking predictable income without ongoing management.

Lifetime Retirement Planning Guide

Early Career (20s-30s):

• Retirement Annuity (RA): Start with an RA for tax-deductible, long-term growth. Employer contributions to Pension or Provident Funds, if available, further strengthen your savings.

Mid-Career (30s-40s):

• Increasing Contributions: Grow contributions as your salary rises, leveraging compound interest.
• Preservation Fund: Transfer employer funds to a Preservation Fund during job changes, protecting savings and allowing continued tax-efficient growth.

Pre-Retirement (40s-50s):

• Performance Review: Check fund returns and risk profile; adjust to preserve gains and optimize growth.
• Goal Setting: Estimate your needed retirement income and adjust fund allocations accordingly.

Retirement Age (55+):

• Living Annuity: Convert savings to a Living Annuity for flexible income, with adjustable drawdown rates (2.5% to 17.5%).
• Guaranteed Annuity: Consider a Life Annuity for stable, lifetime income without market risks.

Insightful Living Annuity Webinar

Living Annuity Webinar

Get insights from experts

Living Annuity Presentation

Step-by-step retirement guide

Using Retirement Calculators

Our retirement calculators provide insights into your financial outlook, allowing you to make informed choices about income needs, savings growth, and tax impact.

• Estimate Income Needs: Determine the amount required for a comfortable retirement.
• Project Savings Growth: Forecast growth over time.
• Assess Tax Impact: Understand potential tax liabilities for better planning.

Free Retirement Calculators:

(click on the buttons below)

Living Annuity Calculator: Project income and longevity.
Preservation Fund Calculator: Estimate growth protential.
Retirement Annuity Calculator: Review contributions for alignment with goals.

Benefits of a Comparison Report

Evaluate and optimize your retirement funds with a Free Comparison Report to assess income, fees, and performance.

• Evaluate Costs: Identify potential savings.
• Track Performance: Compare returns across funds.
• Align with Goals: Ensure funds meet your financial objectives.

Free Comparison Reports:

(click on the buttons below)

Living Annuity Comparison: Estimate income, longevity, and optimal drawdown.
Preservation Fund Comparison: Project growth based and market conditions.
Retirement Annuity Comparison: Review to align with your retirement goals.

Retirement Planning Portfolios:

Investment options to grow and protect your retirement savings.

(click on the buttons below)

Fund Performance: View the latest returns and insights. .
Fund Fact Sheets: Explore detailed fund information.

Top 5 Retirement Planning FAQ’s

1. How much should I contribute towards retirement?

   It’s generally advised to save at least 15% of your income, including employer contributions, to build a strong foundation for retirement.

2. What’s the difference between a Pension Fund and a Provident Fund?

   Pension Funds require two-thirds of your savings to be used for an annuity purchase upon retirement, providing steady income. Provident Funds, however, allow a full lump-sum withdrawal at retirement, offering more flexibility.

3. Living Annuity vs. Guaranteed Annuity?

   A Living Annuity provides flexible income and investment control, while a Guaranteed Annuity ensures a fixed lifetime income, ideal for those wanting stable, market-independent income.

4. What are the tax benefits and implications of retirement products?

   Retirement Annuities, Pension Funds, and Provident Funds all offer tax-deductible contributions and tax-efficient growth, but withdrawals in retirement are subject to tax. Understanding these benefits and costs is essential to optimize retirement savings.

5. How can I maximize retirement savings growth?

   Diversifying across Retirement Annuities, Preservation Funds, Pension, and Provident Funds can optimize tax-efficient growth and help build a substantial retirement nest egg as you approach retirement.

Plan Your Retirement Future

From early contributions to converting savings into income, Investonline provides personalized support in retirement planning to make the most of your retirement journey.

Our tailored guidance in retirement planning helps you build a secure, well-planned financial future for a comfortable retirement.

Contact Me