5 Things to Check Before You Retire

Full transcript

Retirement is just around the corner — and that's exciting! But before you cross that finish line, there are five important things every South African should check to make sure they're truly ready. First, know exactly how much retirement capital you have. Add up all your pension funds, retirement annuities, and savings so you have one clear total picture of what you've built over your working life. Second, work out how much monthly income you'll actually need in retirement. Think about your groceries, medical aid, rent or bond, and the lifestyle you've worked so hard to enjoy — be honest and realistic. Third, understand what portion of your money you can take as a tax-free lump sum and what portion must stay invested to pay you a monthly income for life through a living or guaranteed annuity. Fourth, check the tax implications before you make any decisions. South Africa's retirement tax tables mean the right choices could save you a significant amount of money, so always get professional advice first. Fifth, decide what happens to your remaining capital and who your beneficiaries are when you pass away. A clear plan protects the people you love. Retirement is too important to leave until the last month — get your retirement plan checked before you retire.