Preparing
to retire
Turn your retirement savings into an income so you can maintain your lifestyle when you stop working.
Approching retirement
Retirement savings that work for you
Once you reach retirement, it’s time to draw on the savings you’ve been putting away over the years. If you’ve chosen a retirement annuity as the investment vehicle for your retirement savings, you’ll need to decide how to manage it in order to ensure that the funds you have are able to support you throughout your retirement years.
Preparing to retire
Here are four important questions to ask yourself before withdrawing your retirement savings.
- Do you have enough to retire?
It's important to have a clear idea of what you've saved over time and what you can expect as a monthly income. - Do you plan to withdraw a lumpsum?
You have the option of withdrawing one-third of your retirement annuity as a lump sum when you retire. While this can be helpful, bear in mind that it will also reduce the income you receive from your retirement annuity or retirement income solution. - How will you invest your retirement savings?
You may or may not decide to make a lump-sum withdrawal from your retirement annuity, but regardless of your choice, Namibian law requires that two-thirds of your retirement savings be invested in an income-generating solution like a living annuity or life annuity. - How will you manage your income over time?
Depending on which income-generating solution you choose, you may be able to adjust the amount you withdraw each year. And if you need help with your decision-making, our financial advisers will be there to guide you every step of the way.
PRODUCT OPTIONS
What should you do with your retirement savings?
The funds in your retirement annuity, preservation fund, pension or provident fund must be transferred into an income-generating solution when you're ready to start using them to finance your retirement. In Namibia, SanlamAllianz has three main options available for you.
Provides you with a lifelong income that can increase every year - either by a percentage you choose or in line with inflation.
Pays your nominated beneficiary (a second life insured) an income for life after your death.
Part of the income can also fund an ‘underwriting-free’ life insurance policy, which, at death, pays out tax-free lumpsum to the beneficiary.
At death, the remaining balance may be transferred to your nominated beneficiary, who can choose to continue receiving an income through a Life Annuity, a Living Annuity, or a combination of both.
Pays out remaining funds to your nominated beneficiaries when you die.
Allows you to choose the underlying investment funds and adjust your income once a year.
Provides the means to protect the purchasing power of your income - by exposing the source of you income to market returns, you have the opportunity to let it keep pace with or beat inflation.
Allows you to provide for your dependants after your death.
The Life annuity portion provides a guaranteed income for life.
Provides a guaranteed income for life.
Enables you to benefit from potential income growth over the long term thanks to investment growth.
The living Annuity income can be adjusted to counter worse-than-expected investment returns.
Need help choosing the right solution?
Our advisers are here to help you understand your needs and how you can ensure that they’re met as you head into retirement.