You‘re retiring soon.
As you approach retirement you probably have many questions, such as:
- What income will my savings afford?
- How much control will I have over my investments and income?
- How will I make my savings last?
- Will I be able to leave something for my loved ones?
These pages will help you answer those questions.
Retirees can invest their pension savings in either a Guaranteed Annuity, which is an insurance-type product, or a Living Annuity, which is an investment-type product. Your choice should reflect your main financial priorities, such as:
- A secure income for life
- Keeping pace with inflation
- A flexible income
- Investment choice
- Leaving an inheritance
Your priorities will help you make the decision. One of our retirement experts can talk you through what would be best for you.
10X offers a Living Annuity. This gives you some flexibility regarding how your savings are invested and how much income you draw. On your passing, any residual savings go to your nominated beneficiaries.
In exchange, you assume the risk that your income fails to grow in line with inflation, or that it declines, or even that you outlive your savings.
10X's investment strategy and low fees reduce these risks. Our Retirement Calculator can help you approximate a sustainable income, growing annually with inflation. The 10X Living Annuity is underwritten by Guardrisk Life Limited (FSP No. 76).
You can switch at any time from a Living Annuity to a Guaranteed Annuity (as long as you still have enough funds).
What to consider when it comes to tax
If you withdraw cash from your retirement savings:
The first R500,000 withdrawn is tax-free, the next R200,000 is taxed at 18% and another R350,000 is taxed at 27%. Any further cash taken is taxed at 36%.
If you reinvest your retirement savings:
No tax is paid on amounts you use to invest in a pension but tax may be payable on the pension you receive.