Sowetan

Plan your retirement thoroughly

Peace of mind is most important considerat­ion

- Owen S Nkomo ■ Contact Inkunzi Wealth Group on 087 -160-0018 or e-mail invest@iwgsa.co.za

One of our primary goals for our clients is to hold their hand during their financial journey.

We understand that when it comes to retirement planning, peace of mind is more important than anything else.

Whatever your vision of the perfect retirement happens to be, our first and last question is always: Will you be able to sup- port yourself financiall­y when you are no longer working and retire?

While your personal circumstan­ces dictate the options you have at retirement, it is probably fair to say that most retirees share the same key objective – to receive an income on which they can survive, and which will sustain them for the rest of their lives.

Building a budget and prioritisi­ng your spending

With the one-third from your pension fund, you are allowed to spend it as you wish.

However, when used carefully it can allow you to live the life you have always wanted.

One of our first steps is to build a basic household budget.

It does not take long to create, but it is the foundation for everything else you are going to need.

Choosing a post-retirement product

When you retire from the Government Employees Pension Fund (GEPF), you are allowed to take one-third of your retirement capital in cash.

With the rest of the money you are legally obligated to buy an annuity. But what other options are out there? At retirement you can choose between a guaranteed annuity (staying with the GEPF) and a living annuity (buying an annuity outside the GEPF).

You need assistance to help you understand how you can use either of the products to combat the risks faced by retirees: the risk of outliving your money and the risk of inflation eating into the buying power of your monthly income.

Control over how your money is passed on

There are several ways to keep control over how your money is passed on. For example, your choice of annuity product will determine if your money is passed on to your beneficiar­ies at death or not.

The lifestyle you expect

It’s impossible to predict with much accuracy how much you will need in retirement many years down the road, since all of the assumption­s can change dramatical­ly.

Reducing the administra­tive burden

After you retire you don’t have a regular source of income.

Administra­tive delays and errors in your retirement documents can be a burden to your financial wellbeing without an income or money.

Wealth managers can work with our administra­tors to reduce the time it takes to receive your pension payout.

For individual­s three years before retirement and for those close to retirement, find assistance to carefully consider the options available at retirement.

 ?? / ISTOCK ?? If you budget well you can live the life you have always wanted.
/ ISTOCK If you budget well you can live the life you have always wanted.
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