Inflation, interest rates, and fees will all affect your quality of life in retirement, whether your financial plan consists of discretionary savings, a tax-free savings account, marrying into a wealthy family, investing in retirement products, or a healthy combination of all. The effect of these forces on your retirement savings become even more pronounced in ...

Just over seven years ago, Pravin Gordhan, the then-minister of finance, tabled a proposal aimed at the governance, preservation and annuitisation of retirement funds. This formed part of harmonising the tax treatment of the different kinds of retirement funds. Collectively, these proposals are known as the T-Day reforms. This proposal is coming to fruition on ...

When you retire, you can take a third of your retirement savings as a single payment or lump sum. The first R500,000 is tax-free. All previous withdrawals are added together and considered when determining the tax liability on the lump sum payment. This is called the principle of aggregation and it means that later benefits ...

In this third part of our two-stage FIRE series, Just One Lapper Kris Naidoo shares three considerations to keep in mind if you want to become part of the FIRE cohort. Next week we'll wrap up the series by sharing a do-it-yourself worksheet to run your own numbers. As a quick recap - the first ...

Quick reminder: Two-stage FIRE is a strategy designed specifically for South Africans who are working to achieve financial independence / early retirement. What makes this strategy uniquely South African, is that it considers mandated retirement ages by local retirement fund providers.  In the previous blog, we looked at the concept behind Kris Naidoo’s two-stage FIRE ...

To be financially free and retire early from the rat race is a goal many of us aspire to. But because retirement products in South Africa can only be accessed at age 55 or 65, what’s an early retiree to do when they want to retire at 45?   Enter the two-stage FIRE (Financial Independence Retire ...

If 2020 taught us anything, it's that we just need something to have our backs when things fall apart: An emergency fund when income dries up or medical insurance when the unthinkable happens. When uncertainty is rife, insurance products can cushion the fall.  In terms of retirement products, guaranteed annuities can provide much-needed assurance. As ...

You may have an opportunity to withdraw from your provident or pension fund due to changes in employment during the COVID-crisis. Access to funds might cover some of your short-term expenses, but the long-term impact on your net worth could be severe. In this article we’ll share some factors to consider when making this decision.  ...