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APPROACHING RETIREMENT
Retirement savings that work for you
A Sanlam adviser can help you to understand your options and build a plan that reflects your needs.
planning
What to consider as you approach retirement
Retirement is an important milestone and decision point. How you structure your income now will shape your financial security for the rest of your life. There are four important questions to ask yourself before you retire.
Do you have enough to retire?
Do you plan to withdraw a lump sum?
How will you invest the rest?
How will you manage income over time?
products
How to use your retirement savings
When you retire, your retirement savings must be transferred into an income-generating solution to finance your retirement. South African law gives you three main options for converting your retirement savings into an income.
security first
Life annuity
- Guaranteed monthly income for as long as you live
- Income increases annually — by a fixed rate or in line with inflation
- Option to continue paying a spouse or nominated beneficiary after your death
- Removes the risk of outliving your money
growth-driven
Living annuity
- Remaining funds paid to your nominated beneficiaries on death
- You choose your underlying investment funds
- Drawdown rate adjustable once a year (2.5% – 17.5%)
- Income can keep pace with inflation through market-linked growth
balanced
Life + living annuity
- Guaranteed baseline income for life from the life annuity portion
- Growth potential and flexibility from the living annuity portion
- Remaining living annuity funds go to your beneficiaries
- Adjustable income can offset poor investment performance
Investments
Building a broader retirement strategy
Consolidating these alongside your retirement income solution gives you a complete view of your finances and helps your money work together more effectively.
