retirement planning
f selecting a fund or combination of funds is overwhelming, you may want to consider using a multi-manager. Asset management and the selection of underlying unit trusts require an enormous amount of expertise and skill, and a multi-manager approach has
Contributions to approved retirement funds are tax deductible up to a limit of 27.5% of taxable income, capped at an annual limit of R350 000, but this does not mean that you can’t contribute more without still reaping tax benefits.
Trying to guess how long you will live is a dangerous game to play when developing your retirement plan, and our advice is to develop a range of retirement scenarios using varying longevity assumptions so that you have a clear
Investors are permitted to take out as many retirement annuities as they like. However, the tax benefit is calculated in aggregate and not in respect of each retirement annuity. Similarly, the tax-free portion at retirement may only be claimed once.
As an individual investor, you are free to construct a portfolio that is fully customised to your needs although you will be limited by the provisions of Regulation 28 as mentioned above. This piece of legislation is designed to protect
Except in the case of ill-health or emigration, investors can only retire from a retirement annuity from age 55 onwards, although they are entitled to stop contributing towards their RA at any stage without fear of early termination fees or
One of the most significant advantages of a preservation fund is that you are permitted to make one full or partial withdrawal from the fund before age 55. If there is a likelihood that you may need access to your
It’s easier to remain motivated and positive if you’re working towards a clear set of goals, so take time to get specific about your retirement goals. Avoid framing your retirement objectives in broad strokes such as ‘to live comfortably’, ‘to
As a function of ageing, death becomes more pervasive as retirees get older. Experiencing friends and acquaintances falling ill and dying is depressing, morbid and sad – and this can lead to what is referred to as death anxiety. The
In the ‘Profile of older persons in SA’ prepared by Stats SA it was estimated that around 38% of South Africans over the age of 60 use chronic medication, around 20% use assistive devices such as spectacles, 10% wear hearing
