Finance · South Africa
Should You Convert Investments to Retirement Products Before Retiring?
Moneyweb · 2026/01/27
Summary
As South Africans approach retirement, many wonder if they should convert all their investments into retirement products. Financial advisors suggest that while moving money into retirement-specific accounts can offer tax benefits and protection, it might not always be the best move for everyone. It's important to balance growth, access to funds, and tax implications. Retirement products like retirement annuities or preservation funds help protect savings from early withdrawals and provide steady income during retirement. However, converting everything at once can limit flexibility and may not suit your individual needs or risk tolerance. Advisors recommend reviewing your overall financial plan, considering your expected retirement lifestyle, and possibly maintaining diverse investments to manage risks and capitalize on growth. Getting personalized advice from a trusted financial planner is crucial to make the best decision for your retirement.
OnABudget takeaway: Consumers should carefully consider their retirement investment choices to balance security and flexibility. Small business owners and investors can benefit from tailored advice to protect their savings while ensuring steady retirement income.