Retirement
Articles in "Retirement"
Part 3: The two-pot system and your savings withdrawal benefit
In part 3 of our Two-pot chapter, Jaya Leibowitz reminds us not to lose sight of the importance of preserving retirement savings, and cautions investors...
Part 2: The two-pot system – what we know for now
There has been a lot of noise in the past few months about the changes that are being made to the South African retirement system. In part 2 of our Two-pot...
Part 1: Challenges and opportunities with South Africa’s retirement fund system
While the South African retirement fund system faces its fair share of challenges, there are opportunities to harness and improve retirement outcomes for Sou...
Offshore toolkit part 2: Unpacking South African tax obligations for non-resident living annuitants
South African legislation specifically prohibits the transfer of living annuities to other financial service providers abroad. Therefore, South Africans who...
How to choose the right default option for a retirement fund
A well-designed default investment strategy should strike an appropriate balance between risk and return. Shaheed Mohamed, head of Group Savings and...
Retirement annuities still work
Planning well for retirement is essential to ensure your long-term financial well-being. One key aspect of retirement planning is choosing the product, or...
A focus on the regulatory aspects and challenges of the two-pot system
During the recent Budget speech, the Minister of Finance confirmed the intended launch date of 1 March 2024 for the two-pot retirement system. With 12 months...
Making sense of the proposed two-pot retirement system
In February 2021, the National Treasury announced its intention to amend the retirement fund system in South Africa with the dual aim of creating limited...
Podcast: Are better outcomes for retirement savers on the horizon?
Allan Gray’s head of Assurance, Richard Carter, joins Umbrella Fund specialist Mica Townsend to discuss the challenges with the current system, the...
Five ways employers can help employees prepare for a better retirement
Employers can play a meaningful role in helping their workforce maximise their retirement savings outcomes. Mica Townsend, Group Savings and Investments...
Navigating a changing retirement savings system
The finer detail may remain unclear for the moment, but National Treasury’s proposed retirement reforms have largely been welcomed by the retirement savings...
Great news for retirement savers as offshore limits increased to 45%
Following announcements in the recent Budget speech, the South African Reserve Bank (SARB) has confirmed that the offshore investment limits for all investme...
Could you survive on less than a third of your income in retirement?
Despite taking steps to save, millions of South Africans are at risk of having to make significant lifestyle-related downgrades when they are no longer...
How to make investing for retirement feel less like a sacrifice
With all the financial demands of present-day life, it can be difficult to stay focused on investing for our longer-term financial goals. Balancing the...
PART 10: Retiring? The five most important decisions to ensure your income lasts
Planning is essential to ensure your retirement money lasts as long as you do.
PART 9: When can I retire? Some questions to ask before you hang up your boots
Important questions to ask before you decide to retire.
PART 8: What can I do if I don’t have enough money to retire?
Nine tips to help you increase your retirement savings pot.
PART 7: How much is enough when saving for retirement?
You should aim for a retirement income of 75% of your final salary. Here’s why…
PART 6: How do retirement products work?
It is important to understand how your retirement product works and for retirement annuities this means understanding what the underlying unit trusts invest...
PART 5: What's the difference between retirement products?
Official retirement products have great tax benefits but come with some restrictions. Understand your options before you commit.
PART 4: How to save for retirement: Tips to get you started
Some simple steps to follow to get your retirement savings started.
PART 3: When to start saving for retirement
The accepted wisdom is that you need to start saving for retirement as soon as you are employed, but if you are late it is worthwhile to start as soon as...
PART 2: Why saving for retirement makes sense
Starting your retirement savings is as much a mental battle as it is a financial one. Read up on how your excuses may be holding you back.
PART 1: Why save for retirement?
Step into the shoes of the future you to find out why you should save for retirement.
Key questions to help you prepare for your retirement
Although we all have different circumstances, our objectives in retirement are often similar. We want the income we receive to be sustainable for life and to...
Upcoming changes to provident and provident preservation funds
The Taxation Laws Amendment Act includes changes to the legislation that governs provident and provident preservation funds that will come into effect on 1...
Changes to provident and provident preservation funds: What will they mean for members?
The latest Taxation Laws Amendment Bill includes changes to the laws that govern provident and provident preservation funds that will come into effect from 1...
Divorce and your retirement savings
Divorce can be a traumatic and life-altering experience with wide-ranging social and financial implications. Lebona Khabo discusses entitlement when it comes...
Will prescribed assets be used as a policy tool?
Reports that the government plans to compel pension funds to invest in state assets and projects have understandably caused alarm among investors, spurring...
How to manage your living annuity in uncertain times
Presenting via Zoom webinar, Shaun Duddy discusses the “Rule Book” for managing your living annuity over the long term and interrogates whether these rules...
Managing your living annuity in an uncertain world
In response to the dramatic impact that measures to contain COVID-19 have had on asset prices, National Treasury has announced temporary changes to living...
What happens to your retirement savings if your company shuts its doors?
What are employees’ rights and responsibilities when it comes to retirement savings if a company faces closure during the COVID-19 pandemic?
How to save for retirement when you work for yourself
Driven by the desire for greater flexibility, and improvements in technology, many skilled workers are turning to the gig economy to earn a living. Working...
How your retirement fund benefits are allocated when you die
The process behind retirement fund death claims is challenging to understand and complex to execute. Sonja Smit discusses how to be better informed as a...
How to bring conversations about saving out of the closet
Talking about finances at work can seem like a taboo subject, especially given that conversations about salaries, bonuses or saving for retirement usually ta...
How often should employers review their umbrella fund provider?
The 2019 Sanlam Benchmark Survey found that one-third of employers using umbrella funds have never reviewed their provider, while less than half of responden...
Retirement planning in reality
To truly break the cycle of poverty and start creating generational wealth, young working professionals need to prioritise saving for retirement. Leaveil Des...
Planning for retirement in the gig economy
Millennials are revolutionising the way we work as they embrace the flexibility and independence of the gig economy, but what does this mean for their...
The ultimate human race
As investors there is a lot we can learn from marathon runners that can assist us with our own “ultimate human race” – the challenge of retiring financially...
How to prevent a financial day zero
Over the past year, Western Cape residents have had to envisage a future without running water and adapt their lifestyles accordingly. They have rallied...
How to make your retirement savings last: Common myths debunked
There are many risks that need to be overcome to ensure that retirement savings last, says Shaun Duddy, including longevity, inflation and investment risk. I...
Umbrella funds can help attract millennial talent
Millennials are redefining the working environment, placing a bigger emphasis on tech and innovation, flexibility and rewards that aren’t only about...
Top up your umbrella fund now to maximise your annual tax benefits
With the end of the tax year fast approaching, investors who are saving for retirement through their employer’s umbrella fund have until 28 February...
How to achieve a sustainable retirement income
Shaun Duddy discusses how to meet and manage risks while drawing a stable income in retirement. He explains why investing at least 50% in growth assets is a...
Retiring or withdrawing? Think carefully before sending us the form
After a lifetime of work retirement is often a welcome change of pace, but many people rush into a decision to retire or withdraw from their retirement fund....
The trick to retiring with enough
We are often asked by clients and prospective clients what the magic trick is that can turn a portion of your income into a comfortable retirement. It is har...
How do I know I’m on track with my retirement savings?
It is important to have a goal when you are saving for retirement. Studies show that you need 17 times your final pre-tax salary...
Introducing the Allan Gray Umbrella Retirement Fund
Over the last four years, the market share of commercial umbrella funds has increased by 70%, at the expense of standalone employer funds...
Introducing the Allan Gray Umbrella Retirement Fund 2017
Group savings should be an extremely efficient way to prepare for a comfortable retirement. Nazia Suleman and Saleem Sonday discuss how Allan Gray plans to...
What are the tax benefits of contributing to a retirement annuity?
The South African Revenue Service (SARS) wants to help you pay for your retirement. The way in which they do this is by offering generous tax deductions when...
How to save for a comfortable retirement
How much is enough to save for a comfortable retirement? Wanita Isaacs unpacks the concepts of ‘enough’ and ‘comfortable’ in the context of this distant,...
What you need to know about the retirement fund changes
National Treasury is making changes to retirement legislation to encourage investors to save more for their retirement and to improve the alignment between t...
Welcome amendments to retirement reform
The retirement reform amendments contained in the Taxation Laws Amendment Bill, which will come into effect on 1 March 2016, are a positive step by Treasury ...
More for the future you, less for the tax man
The tides are changing in the retirement savings space, with National Treasury encouraging us to save more for retirement by significantly increasing the tax...
Empower your staff with a Group RA
Employers who illustrate to their staff that they care about their futures by providing them with retirement savings solution, along with investor education,...
Life in a month
July has been designated ‘Savings Month’ by the Savings Institute of South Africa. It is a good time to reflect on the choice we make between saving and...
Delays to retirement reform shouldn't mean delays to your retirement savings
In Quarterly Commentary 1, 2013 we wrote about retirement reform, discussing how the changes would affect existing and potential retirement fund members. Fas...
Convert part of your tax bill into retirement savings
While the long-term benefit of saving for a secure retirement may be obvious, investors may not appreciate the extra tax boost available from saving in an...
Regulatory update: Get up to speed before year-end
There is a lot going on in the regulatory space. Between retirement reform, on the one hand, and the so-called ‘Twin peaks’ model of financial regulation on...
How to ensure your retirement income goes the distance
It is only a number of years into retirement that the consequences of decisions made early on begin to show. If you are nearing retirement , or you are in...
Retirement fund withdrawals and tax
The 2014 National Budget introduced changes to the retirement tax table. From 1 March 2014, the tax-free amount members and beneficiaries can take as a lump...
Consider your lifestyle inflation when saving for retirement
While most investors seem to understand the need to contribute consistently to their retirement funds, and to start saving as early as possible, many investo...
Group retirement annuities bolstered by retirement reform
You should not let the current uncertainty around retirement reform inhibit your willingness to save for your retirement; it is very difficult to make up for...
Retirement reform: How will the changes affect you?
With a very small percentage of South Africans able to support themselves financially in retirement, Treasury has been taking a thorough look at retirement...
February: A good month to review your retirement plans and bump up your retirement savings
Don’t kid yourself that retirement planning is for those nearing retirement; the decisions you make early on have the greatest impact on your investment. The...
Make sustainability a priority when planning your retirement income
Over the last 20 years pension funds have increasingly passed the responsibility for generating income after retirement on to retirees and insurers, rather...
Planning for income post retirement
If you are knocking at 60's door and fall into the small minority of South Africans who have saved enough to retire comfortably, you may be planning your...
Retirement annuities: still an attractive choice for retirement savings
In light of changes to the legislation governing retirement funds, which now limits the exposure individuals may have to various asset classes (e.g. a maximu...
Do the more restrictive individual investment limits on RAs outweigh their tax benefits?
Previously, retirement funds were considered an obvious choice for many investors due to the tax benefits they afforded. However, changes to Regulation 28 of...
Making sense of the revised retirement fund regulations
A recent revision in South African pension fund regulations affects your ability to transact on your retirement fund investment account. Ian Barow and Taryn...
Working with the new retirement fund regulations
Regulation 28 of the Pension Funds Act sets out the maximum exposures that retirement funds may have to various asset classes. Previously this was monitored ...
Living annuities for life
Living annuities need to provide an income stream for life. This means that the asset allocation in your living annuity investment should be aimed both at...
Solving the problem of retirement funding for small and medium-size businesses
In Quarterly Commentary 1 of 2008 we introduced you to the Allan Gray Group Retirement Annuity. Two years on we reflect on how this system is proving to be a...
Early withdrawals from your retirement savings can be taxing
In this article, Michael Summerton and Carla Rossouw provide an overview of how withdrawal and retirement benefits are taxed. They use practical examples to...
Retirement fund reform - still debated
In previous articles covering retirement fund reform, we have shared our views on some of the choices being debated between stakeholders (see Quarterly...
