The months leading up to your retirement are a busy time as you make plans to secure your financial future. One of the most important decisions you will make during this time is what to do with your retirement fund once you retire.
You have a number of options. You will usually be able to take part of your retirement fund as a lump sum; some, or all of this lump sum, may be taken tax- free. Then, provided you meet certain criteria, you can use the remainder of your retirement fund in the following ways:
Buy an annuity – a regular guaranteed income for the rest of your life
Re-invest it in an Approved Retirement Fund (ARF) and/or an Approved
Minimum Retirement Fund (AMRF)
Take as a taxable cash lump sum subject to PAYE Any decision you make at this time can have far-reaching implications on the quality of your retirement.