Saving for retirement

We all await the day where we pick up our feet and take a well-deserved break. Let’s ensure when that day arrives, we are well prepared financially to live our best lives.

What is saving for retirement?

The time is now

The best time to have started saving for retirement was the day you started working. The next best time to start saving, is today!

To achieve peace of mind at retirement, knowing you are well positioned financially to maintain your desired lifestyle; we need to lay the foundations today.

By utilizing our greatest asset “time”, we can know take one step closer to fulfilling your hopes and dreams at retirement.

Calculator

How Much do I Need to Save for My Retirement?

About retirement annuities

Why we like them

There are many ways to save for retirement, but the most disciplined way is to utilize a retirement annuity (RA). RA's are a tax efficient way to save given the contributions are tax deductible. You also earn compound interest on your savings until your desired retirement age (minimum retirement age is 55 for RA’s).

Tax benefit

Tax benefit: the cumulative contributions to all retirement funds are tax deductible up to the greater of 27.5% of your taxable income or remuneration limited to R 350 000 per annum.

Access on retirement

Access on retirement: One third of the fund can be taken as a lump sum in cash and two-thirds must be used to purchase an income (in the form of an annuity). The funds can alternatively be accessed should you pass on or become disabled, dependent on the rules of the relevant fund.

Tax on proceeds

Tax on proceeds: the lump sum is taxed according to the retirement tax table whilst the income purchased from the annuity will be taxed according to the income tax table.

Alternative savings solutions

What about savings in other products?

There are various solutions available to you and your current situation which may benefit your retirement planning, all with their own unique characteristics, all of which should be considered holistically. See more under: Investment planning | Investment solutions

Pension, Provident and Preservation funds

How do these affect my retirement planning?

Pension and provident funds are a compulsory fund and is a condition of your employment contract with your employer.

The fund values and contributions must be factored into your retirement plan.

Upon resignation from your employment, the fund value may be preserved towards your retirement goal.

Start your Retirement Journey

Speak to us now and get advice you deserve.