After 37 years serving South Africa in the defence force – as an instructor, a commander and a staff officer – John now counts three other African countries as clients. For obvious reasons, though, he was not keen to talk about his clients, or even where he was due to fly to the day after we met.
He also chose not to name names when talking about the first company he invested his retirement savings with after withdrawing them from the Government Employees Pension Fund. “One of the big banks” was all he would say of the institution that charged him a high monthly fee (which he had not been told about) for membership of a fund that was performing poorly.
Where to invest savings for optimal growth and tax efficiency
By Danine van Zyl
Where to invest for retirement remains the top priority for most investors when they seek professional financial planning advice. The majority select a retirement annuity as the most logical option for their needs. However, this might not always be their best or only option.
Danine van Zyl
Saving for retirement through retirement annuities and preservation funds has always been widely recommended due to the tax benefits available. Investors are entitled to a tax deduction on their contributions of up to 27,5% of their taxable income or remuneration but limited to a maximum of R350 000. Growth on the investment is further free of any capital gains or dividend withholding tax implications – the objective being to encourage investors to save towards their retirement to avoid them from ultimately becoming dependent on government support. Controversial legislation, designed to protect investors,
Options beneficiaries have at death on retirement products
By Sonia du Plessis
When looking at retirement products, one needs to differentiate between “pre-retirement” and “post retirement” products, as their treatment and options are different in the event of the owner’s death. It is also important to know what taxes are involved when money gets transferred to the beneficiary.
“Pre-Retirement”
Sonia du Plessis
RA’s, Provident, Pension and preservation funds. The value of the investment is excluded from the estate of the deceased.
On death prior to retirement the fund will be paid to the nominated beneficiaries (subject to Section 37C of the Pensions Fund Act) or to your estate. This is vitally important in that under S37C, the Trustees of the fund have the right (and obligation) to determine who the dependants of the deceased are and allocate the investment to the dependants. The trustees have up to 12 months to make this determination. The importance of
One year before retirement: here is your important checklist
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Even if you are looking forward to the end of your working life, the idea of retirement can be daunting. There is often an instinctive fear of moving into a stage of life where you may end up consuming your capital, as well as anxieties about a diminishing lifestyle. Like most challenges in life, preparation is key, says Asavela Gwele, client relationship associate at 10X Investments.
Here, she outlines a pre-retirement checklist that will help you make sure you’re on track.
Refine your budget
Your financial situation will most likely change during retirement so it’s important to have a clear and defined budget. Before retirement, it was up to you to build a savings pot to fund the lifestyle you wanted in retirement. Once you retire, you will need to deal with what you have and adjust your lifestyle to what you can afford.
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