Retire: Tax on lump sums

Carina JoosteLatest, Retire

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 ...
The Fat Wallet Show with Kristia van Heerden

Podcast: RAs and tax

Kristia van HeerdenLatest, The Fat Wallet

For all the flack they’ve been getting, there’s no easier way to reduce your tax liability than pension fund contributions. In this week’s episode of The Fat Wallet Show, we help Megan correct an assumption about her tax savings on retirement annuity contributions. We use the opportunity to talk about offshore allocation and prescribed assets. ...

Retire: Bleak reality for future retirees

Carina JoosteLatest, Retire

The 3rd annual Retirement Reality Report (RRR20) by 10X Investments was released in Q4 2020. This report looks at retirement readiness in South Africa, or rather, highlights how far from ready South Africans are for retirement. RRR20 was never going to be a feel-good read - especially in 2020. COVID-19 and its devastating ripple effect ...

Retire: Two-stage FIRE spreadsheet

Carina JoosteLatest, Retire

Over the last few months, we've been discussing what early retirement would look like to those who have Regulation 28-compliant pension funds or other retirement products. Our friend Kris Naidoo came up with a strategy that would help him utilise the funds he amassed during his working life to fund an early retirement, even though ...

Retire: Two-stage FIRE (part 3)

Carina JoosteLatest, Retire

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 ...

Retire: Two-stage FIRE (part 2)

Carina JoosteLatest, Retire

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 ...

Retire: Two-stage FIRE (part 1)

Carina JoosteLatest, Retire

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 ...

Retire: Guaranteed annuities

Carina JoosteLatest, 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 ...
The Fat Wallet Show with Kristia van Heerden

Podcast: The two-stage FIRE approach

Kristia van HeerdenLatest, The Fat Wallet

If you went into formal employment straight out of university or school, odds are you have some sort of pension fund or retirement annuity. You may since have realised the idea of working until you’re 65 is entirely optional. If you’ve already allocated a large part of your income towards your retirement, you need to ...