Retirement planning covers two distinct phases: building your retirement capital during your working years, and managing that capital efficiently once you stop working. Both phases require careful strategy — the first around tax efficiency and growth, the second around income sustainability, investment risk, and estate efficiency.
South Africans are living longer. A couple retiring at 65 today has a significant probability of one partner living into their 90s — meaning retirement capital needs to last 25–30 years. The transition from a Retirement Annuity to a Living Annuity or Life Annuity is one of the most consequential financial decisions you will ever make. Getting it wrong — choosing the wrong income level, the wrong fund allocation, or the wrong product — cannot easily be undone.
During the accumulation phase, I optimise your retirement funding across tax-deductible vehicles — retirement annuities, pension and provident funds, and tax-free savings accounts — to maximise after-tax wealth at retirement. At the transition point, I model multiple scenarios to determine the right product, income level, and investment strategy for your specific circumstances. Post-retirement, your plan is reviewed annually to ensure your income remains sustainable as markets and your life evolve.
Individuals within 10 years of retirement who need a transition plan, and working professionals who want their retirement savings structured as tax-efficiently as possible.
A life annuity pays a guaranteed income for life — regardless of how long you live or how markets perform. A living annuity gives you control over your investment and drawdown rate, but the risk of outliving your capital sits with you. The right choice depends on your other income sources, your estate planning goals, and your risk tolerance.
Both — ideally. They serve different purposes and have different tax treatments. An RA gives you a tax deduction on contributions now; a TFSA gives you tax-free growth and withdrawals later. Used together, they are the most tax-efficient retirement savings combination available to South African investors.