Finance · South Africa
Should You Convert All Investments to Retirement Products Before Retiring?
Moneyweb · 2026/01/21
Summary
Many South Africans wonder if they should convert all their investments into retirement annuities (RAs) before retiring. While RAs offer advantages like tax savings and long-term growth, converting non-retirement investments into RAs without receiving tax benefits may lead to paying higher taxes. This happens because the money you transfer might be taxed at a high marginal rate. It's important to weigh the benefits and downsides before deciding. Consulting a financial advisor can help you choose the best strategy for your retirement savings without creating unnecessary tax costs.
OnABudget takeaway: Before moving all your investments into retirement products, consider potential tax impacts to avoid reducing your savings. Small business owners and investors should plan carefully with professional advice.