What will you do with your pension fund when you retire?

Retirement is one of the most important financial decisions you will ever make. Due to regulation your options are limited, but choosing correctly will protect and grow the capital you have spent a lifetime building. We can help you make the right choice — come and see us. Read more ↓

Once you retire you are able to withdraw a third of your pension fund share of which only R500 000 is tax free. You then have two main options for the remainder:

A fixed life annuity is administered by an insurer who pays you a guaranteed income for life in exchange for your pension capital. It is simple and predictable, but once you purchase it, that capital belongs to the insurer — you cannot earn further interest, profit from growth, or leave it to your beneficiaries.

A living annuity keeps your capital invested and earning returns. You elect to draw a percentage each year, paid monthly or annually. The capital remains yours — it does not form part of your estate, so it passes directly to your beneficiaries when you die. The responsibility is greater, but so is the reward: a well-managed living annuity can provide retirement income without depleting your capital, giving you peace of mind that your wealth continues to work for you.

We believe a living annuity is the most appropriate option for most of our clients. Our VPM Sygnia Living Annuity offers a choice of portfolios geared towards capital growth and preservation, including offshore exposure. If you have special investment needs, contact us and we will find the right solution together. Our door is always open.