Retirement can be enjoyable if you plan and manage your money well.
While most of us look forward to retirement, it also conjures up worries and fear about whether we’ll have enough money to enjoy the lifestyle we want – specially as we get close to retirement.

The fear is understandable, given the sudden transition from having control over your finances while you’re working and earning a steady income, to having to rely on the limited resources you’ve put in place to provide you with the income you need. When you add rising living costs, increasing healthcare expenses, and that Covid-19 reminded us how vulnerable our money and investments can be, the financial stress that many people associate with getting older is understandable. But there are ways to combat this and have peace of mind.
 

Investing in a tax-efficient way can have a significant, positive impact on your retirement outcomes.
Tax-efficient investments are investments that attract minimal taxes, putting more money back in your pocket. Whether you still have some years to go until retirement, are approaching retirement or are already retired, making full use of the tax savings available to you can make a big difference to your financial situation and your peace of mind.

Retirement annuities (RAs) and tax-free investments (TFIs) are both very effective to minimise your tax liability and maximise your savings.
While it’s best to have both, it will depend on your circumstances and needs, which is why personal advice is so critical. While an RA is specifically designed for retirement planning, a TFI is a low-cost, flexible option to supplement your retirement or any other long-term savings.

The summary below explains the main tax benefits and features of RAs and TFIs, but you can also see a more detailed comparison here.

Retirement can be a ‘second phase of life’ if you plan well.
Traditional views about retirement are changing. Instead of focusing on the end of a career or formal employment, more people are now concentrating on what they plan to do in their ‘second phase of life’. Today’s seniors are healthy and dynamic, with so much experience, insight and value still to offer. This means that most of them have no desire for a traditional retirement, preferring instead to find ways of staying active and continuing to earn an income.
 

We can help you optimise the tax-efficiency of your retirement savings and make informed decisions.
Your wealth manager would be happy to advise you on what investment options may be most appropriate for you (including how much to invest and choosing underlying investment options where appropriate) and help you understand how it will fit in with your overall investment portfolio and pre- and post-retirement plan.

For your convenience, you can also take out or top up a TFI on the Nedbank Private Wealth app – no paperwork required.

If you aren’t a client yet and want to benefit from our expert advice, please get in touch.
Contact us on 0860 111 263 or complete our online form and a consultant will call you back.