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Retiring wealthy in South Africa.

As a young adult residing in South Africa, I often found it very hard to save money. It’s a recurring thought and the question I find myself asking time and time again is; how can I save for my future with the salary I’m earning? For not only myself but for my family.

I recently sat down with a qualified Financial Advisor popularly known as Zanele M, founder & Managing Director of Regenerate Insurance Brokers. We spoke about various financial products one can consider to ensure that even after retirement, I have an income to help take care of my living expenses.

I got three words for you: Retirement Annuity Plan.

In this current economy, I may struggle to save large amounts of money with my salary however, I can save my future with a Retirement Annuity Plan in place. I would like to retire wealthy; I mean, who doesn’t? But how many of us amongst the youth equip ourselves with enough knowledge to achieve this? (Retiring wealthy)

Let me break it down further for you.

A Retirement Annuity Plan is a financial product that guarantees you a regular income when you decide to retire. This plan is an investment towards your retirement and allows an individual to attain an income after retirement.

In South Africa, multiple insurance companies offer this financial product.

Should you be a member of a retirement fund, it's compulsory for you to receive a benefit statement annually. Contents in the benefit statement provide crucial information such as your benefits, your level of retirement savings, and other general information on your investment.

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The advantages of a retirement annuity plan are as follows:

1.Your investment growth remains tax-free,

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2. Regular income after retirement,

3.There are flexible payments.

Multiple plans are offered depending on the different insurance/financial institutions. As a member with a retirement investment, you can only access your savings from a minimum retirement age of 55.

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It’s recommended that one sits down with a financial advisor when making such decisions. In doing so, you will be quick to learn that creditors don’t have access to your investments, even when you cash out on them.

With such a plan in place, it's important to remain calm and patient with your investment. I immediately thought about the end goal I want for when I retire. Jet skis with my wife, regular travelling with my kids, and ensuring I have the finances to fund my kid's dreams.

If this blog was informative and you would like to read more on financial products, follow Zanele M on the following handles:

LinkedIn: Zanele Mokoatle

Facebook: Zanele Mokoatle

Instagram: zanelem_thebroker

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Lwazi M Nene

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