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Retiring With more than R30 Million: The Tax Plan No One Tells You About
Pros and Cons: Living Annuity
Retiring with R30 million sounds like financial freedom. But how you structure that wealth can make an enormous difference to the tax you pay. In this episode, Hardi Swart uses the fictional story of Sam and Mary to explore tax-efficient retirement planning in South Africa. We unpack cash and interest income, local and offshore tax wrappers, sinking funds, retirement annuities, living annuities, disallowed retirement contributions and Section 10C. Because building wealth is only part of the journey. How you structure, use and eventually transfer it matters too. Educational content only. Not personal financial or tax advice.
Living Annuity in South Africa: What are the pros, cons and biggest risks? A living annuity gives you flexibility, investment control and the potential to leave your remaining retirement capital to your family. But it also comes with an important responsibility: making sure your retirement savings last. So, is a living annuity the right choice for your retirement? In this episode of the Family Wealth Pros & Cons series, Certified Financial Planner® Hardi Swart and Senior Financial Planner Cam Sondlo explain the advantages, disadvantages and risks of living annuities in South Africa. You'll learn: - How a living annuity works in South Africa. - The advantages of flexibility and investment control. - The risks of withdrawing too much retirement income. - Why poor market performance early in retirement matters. - The tax benefits and costs of living annuities. - What happens to your living annuity when you die. - The differences between a living annuity and a life annuity. - Why combining both products may form part of a retirement strategy. With living annuities, you can generally choose an annual income of between 2.5% and 17.5% of your investment value. But just because you can withdraw a certain amount doesn't mean that it's sustainable. Whether you're approaching retirement, already retired or helping a family member make retirement decisions, this conversation will help you understand the important trade-offs.
Most South Africans don’t mind paying tax. But nobody wants to pay more tax than they need to. In this episode, Certified Financial Planner® Hardi Swart and Senior Financial Planner Cam Sondlo unpack one of South Africa’s most powerful long-term investment tools: the Tax-Free Savings Account (TFSA). We cover how a TFSA works, contribution limits, common mistakes, fees, investment choices, and how it can fit into a broader retirement plan. Used correctly, a TFSA can potentially grow into millions of rands - with no South African tax on interest, local dividends or capital gains. 🎥 This podcast is adapted from our Family Wealth YouTube content. Some episodes may refer to charts, examples or other visuals. If something isn’t clear through audio alone, visit the Family Wealth YouTube channel to watch the full video. 🎧 Follow the Family Wealth podcast for practical, easy-to-understand conversations about retirement, investing and building wealth in South Africa. Disclaimer: This podcast is for educational and informational purposes only and does not constitute personalised financial advice. Please consult a suitably qualified financial adviser regarding your individual circumstances.