Go RSA Posted February 23, 2017 Report Share Posted February 23, 2017 I have been out of South Africa for a long time. I have an old Retirement annuity that I need to do something with. I want to get an income from the Retirement annuity in South Africa as I have expenses to meet there. I have approached Liberty but their fees seem remarkably high, at least by Australian standards. Would someone who knows the South African situation today offer some advice on converting a Retirement annuity to a regular income stream? (I am 66). Thanks for any suggestions or comments Quote Link to comment Share on other sites More sharing options...
CharlesH Posted February 23, 2017 Report Share Posted February 23, 2017 Can give you the name of my financial adviser if you want. He is not affiliated with any of the financial service providers so he can get you the best fee . Quote Link to comment Share on other sites More sharing options...
Go RSA Posted February 28, 2017 Author Report Share Posted February 28, 2017 CharlesH sent me the info - many thanks. I want to convert my Retirement annuity to a regular income stream. Anyone else got any suggestions or tips? Quote Link to comment Share on other sites More sharing options...
GarethDavies Posted March 1, 2017 Report Share Posted March 1, 2017 Hi Go RSA, I am not giving any financial advice, just some things to consider, I would ask a South African adviser to have a look at what is in your retirement annuity ( what funds ) and perhaps change the funds so that it is geared toward high dividend shares and good income generating assets. Growth Stock for capital gains may not be the correct approach if an income is the focus? I would also consider flexibility with regards liquidity and the ability to get your hands on your money should you ever need it urgently. If you convert your retirement annuity to a living annuity, your money is basically locked in South Africa. Yes you can draw 17.5% down on it as a maximum, but this means that you will never get out 100% of your funds, - although you will get most of it out, it will take a good 7-8 years or so..... Cashing in an RA - one must consider the upfront tax considerations. 30% +- Are you concerned about rand depreciation? The living annuity can invest 100% offshore, the RA i think has a max allocation of 30% offshore! Fees are a big issue. so what platform are you on - Liberty/Old Mutual/Sanlam/Investec etc? you could call them talk about funds and instruct them to change your funds accordingly without paying an adviser. this however means you are making your own investment decision and i am not sure the level of sophistication you would be comfortable with. Another strategy , would be to get the work done with an adviser and then a year later call up your platform and take the advice fee off. Advisers are there for active management and protectiveness. if this is a set and forget investment then why pay fees for 10 years? Hope that gave you some interesting basic considerations to think about and i hope you make the right decisions, but ultimately chat to a professional in South Africa as that landscape is an ever changing one. Regards Gareth Davies JBWere 1 Quote Link to comment Share on other sites More sharing options...
Go RSA Posted March 1, 2017 Author Report Share Posted March 1, 2017 Hi Gareth Thanks for taking the time to reply. The information you provide is most helpful. It gives me some good ideas. Quote Link to comment Share on other sites More sharing options...
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