Retirement planning and retirement income

Our “Am I on track?” calculator gives a range from a few figures. A full review looks at everything, including your funds, your home, your health, your family and when you would like to stop working.

You can make one withdrawal each tax year, of at least R2,000. It is taxed at your marginal rate, your fund may charge a fee, and it leaves you less for retirement. It is meant for emergencies. Our two-pot tool shows what you would actually receive.

You can move your retirement savings into a preservation fund, your new employer’s fund or a retirement annuity. Since September 2024, your retirement pot has to stay invested when you resign. You can still withdraw your savings pot, and money saved before September 2024 can be cashed out, but you will pay tax on it and have to start again.

A way to turn retirement savings into an income. The money stays invested, and you choose how much to draw each year, between 2.5% and 17.5%. The biggest risk is drawing too much too early and running out.

A guaranteed, or life, annuity pays a set income for as long as you live, but you cannot change it later. A living annuity is flexible, but your income is not guaranteed. Many people use a mix of both.

Medical costs usually rise as you get older. Plan for contributions in retirement, and check whether your employer’s medical aid subsidy stops when you leave.