• You are 55 years old and can now by law retire from your retirement annuity or pension preservation fund.
• You can take up to one third of the value of your RA or pension preservation fund in cash (subject to tax) and have it paid into your bank account.
• You must use a minimum of at least two thirds of the value of your retirement product to purchase an annuity that will provide you with an income. You can use more than two thirds.
• The two thirds can be used to purchase either a living annuity, life annuity or a combination of both.
• These various annuities have different implications, restrictions and rules. Please see the articles above for more detail.
• Your chosen annuity will provide you with either a monthly, quarterly, half-yearly or annual income payment. This income will be subject to tax.
• Money that can be left to your beneficiaries when you pass on will depend on the annuity type chosen.
• It’s a big decision and there is a lot to consider - we suggest getting good financial advice to make an informed decision.