Retirement marks one of life's biggest transitions, yet many South Africans spend decades saving for it without ever learning how to use those savings wisely. According to financial experts, the difference between a comfortable retirement and financial stress often comes down to asking the right questions before that final workday arrives, reports Cape town Etc .
According to Siphamandla Buthelezi, who is the Head of Platforms at NMG Benefits, warns that waiting until retirement to plan is a dangerous gamble. The ideal time to start is five years before you retire, he says. This enables you to make informed decisions, iron out any admin issues, and understand the impact of your choices .
Here are the key questions experts say you must address:
1. What Happens to My Savings?
The first major decision is whether to opt for a living annuity flexible but market-dependent or a life annuity guaranteed income but inflexible. Each has different risks, tax treatments, and long-term implications. A living annuity requires careful drawdown management to avoid outliving your savings, while a life annuity locks in payments for life, but you sacrifice control over your capital.