Retirement Options: what’s best for you?

 In Blogs

We all know that planning for retirement is a crucial aspect of financial wellbeing. It creates the kind of peace of mind you would want as you approach your retirement years. But apart from the choices with regard to how you save, invest, initiate policies, and participate in retirement schemes, there are many other aspects of retirement to consider. Choice will always be influenced by key factors such as your risk tolerance, financial goals, and personal preferences.

Slowing down on lifestyle ambitions as you approach retirement years is not recommended. There are many interests, pastimes, and involvements to occupy you and increase the value of your income – or may provide personal growth and satisfaction even in the later years, encompassing both local and international interests.

Taking stock before you retire

Domestic retirement options in South Africa have long revolved around employer-sponsored pension funds. If you have made personal arrangements to grow this source with supplements, all to the good. Many people use dedicated savings plans, policies or retirement annunities to increase their financial options upon retirement.

Choices can also include investing in international markets to provide diversification and exposure to global economic trends. Maintaining offshore bank accounts in stable currencies is another choice. In this way, you can protect savings from currency volatility and also facilitate international transactions, thus providing you with liquidity as and when required.

Then there’s the cost of living. Where will you live that will afford you the most value for your income? Some people choose to relocate to countries with a lower cost of living. This can stretch retirement savings further, especially if you choose a country that offers favourable tax conditions for retirees.

Investing in international property can be an early choice in your retirement plans – either as a destination home or as income value. Either way, real estate anywhere can provide both income and potential capital appreciation.

However, if you are thinking of international living and investing, there are key aspects to keep in mind:

  • South Africans need to manage the risk associated with currency fluctuations. Diversifying assets and holding investments in stable currencies can mitigate this risk.
  • Understanding tax implications is crucial for expatriates. South Africa has double taxation agreements with several countries, preventing taxation on the same income in both jurisdictions.
  • Access to quality healthcare is a vital consideration for retirees wherever they are. International health insurance can provide coverage in different countries, ensuring your peace of mind during retirement.
  • In addition, South Africans considering retirement abroad should be aware of residency and immigration laws in their chosen destination. Compliance with local regulations is essential.

Whatever you choose, and however you plan your retirement, It’s crucial to seek professional financial advice to create a comprehensive retirement plan that considers a variety of income sources – from your company pension across the board to further options both locally and internationally. Through an understanding the wide variety retirement options available, you can make informed decisions and secure a comfortable retirement lifestyle.

Empfin Solutions – the team that keeps your team happy

We’re an Old Mutual franchise with our primary focus on the three main areas of concern in everybody’s financial planning:

  • Your Company Benefits – advising on, and servicing umbrella pension and provident funds.
  • Your Personal Financial Planning and Provision – Estate planning, Wealth Creation and Retirement Planning.
  • Your Assets – motor and household insurance.

Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.

Find out how you can benefit at: www.empfinsolutions.co.za

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