What should you do with your retirement savings?
The funds in your retirement annuity, preservation fund, pension or provident fund must be transferred into an income-generating solution when you're ready to start using them to finance your retirement. In South Africa, you have three main options available to you.
Security
Provides you with a lifelong income that can increase every year - either by a percentage you choose or in line with inflation.
Pays your nominated beneficiary (a second life insured) an income for life after your death.
Flexibility
Pays out remaining funds to your nominated beneficiaries when you die.
Allows you to choose the underlying investment funds and adjust your income once a year.
Provides the means to protect the purchasing power of your income - by exposing the source of your income to market returns, you have the opportunity to let it keep pace with or beat inflation.
Best of both
Allows you to provide for your dependants after your death.
Provides a guaranteed income for life.
Enables you to benefit from potential income growth over the long term thanks to investment growth.
The Living Annuity income can be adjusted to counter worse-than-expected investment returns.