Solutions Getting Ready to Retire

Getting Ready to Retire

While it is never too late to make a difference to your retirement plan, it is always better not to leave it for the last minute. Here, in general, are your options when you retire:

DEFER YOUR RETIREMENT

The Old Mutual Wealth Retirement Funds do not specify a retirement age and you may remain a member as long after age 55 as suits you. You may remain a member even if you retire from formal employment. If you are a member of more than one of the Old Mutual Wealth Retirement Funds, or any other retirement funds, you may retire from these retirement funds at different times.

TRIGGER YOUR RETIREMENT BY: TAKING PART OR ALL OF YOUR RETIREMENT SAVINGS IN CASH

The amount you may take in cash depends on whether you belong to a pension or provident fund and may be subject to tax. Remember that immediately spending any of this cash may negatively influence your financial stability later in retirement. Financial planners can provide you with advice on the tax implications of taking an amount in cash, and the impact if you spend a portion of that immediately.

PURCHASING AN INCOME

It is advisable to use as much of your retirement savings as possible to secure the income you need. An annuity is the regular income you receive during your retirement years. The annuity is provided through financial products which then pay the regular income. The two main financial products offering annuities are life annuities and living annuities. The most suitable option will depend on your own circumstances and needs. There are also a number of variations available in terms of these two products. A financial planner is equipped to take you through the at-retirement process to help you choose between these options.