Retirement Planning
One key advantage of purchasing a living annuity with your retirement capital is that it is not subject to Regulation 28, allowing for more aggressive investment strategies, including 100% offshore exposure via Rand-denominated feeder funds. Direct offshore investing is not
Keep in mind that any and all previous withdrawals and/or severance benefits are also taken into account when calculating the total taxable withdrawal, meaning that it is a cumulative total and not calculated on a pre-withdrawal basis. As such, be
If you hold both discretionary and compulsory investments, structuring your withdrawals tax-efficiently is key to preserving your wealth. You must also manage drawdowns from your living annuity carefully to prevent premature depletion of your capital or future cashflow constraints.
Most importantly, full disclosure on your insurance application form is critical to ensure that your claim is not rejected at claims stage. Remember, even a seemingly small non-disclosure which has no relation to one’s disability can result in your claim
When determining an appropriate retirement income, avoid relying on general rules of thumb. Each retiree has unique circumstances that require thorough analysis to establish an income strategy tailored to their needs. While certain expenses, such as mortgage repayments and retirement
Many retirees choose to hold on to the family home for sentimental reasons, even after their adult children have established their own households. However, if your long-term plan is to downscale to a more manageable property, it is worth considering
If leaving a financial legacy for your loved ones is important to you, you may favour the idea of a living annuity as opposed to a life annuity.
Purchasing a sectional title unit also grants you full ownership, with the property registered in your name through the Deeds Office. Like freehold properties, you’ll be responsible for bond costs, transfer duties, and conveyancing fees.
