Search

What we’re about

We are on a mission to create more opportunities for us to grow together because when we share…

My Money Matters

If it affects your pocket, we’ll cover it. We’re talking the ins and outs of lobola, smart ways to save...

My Business

Running a business is no joke. We’re here to help you find ways to do more with less …

Arts and Sports

We invest in and support the creative and sporting talent of South Africa. From the most prestigious art…

Life at Absa

There is a lot more to us than the smart suits and polished shoes you see on the outside…

My Moments

Whatever your life moment we will be there for you.

What to do once you retire

Retirement is your long awaited ticket to freedom, where you can relax, play and learn at your own time. Regardless, you’re probably a little nervous about it all. Following our advice will help you turn this new leaf into a journey of reawakening and adventure – all while staying financially astute.

Your new cost of living

When you retire, you only receive 1/3^rd of your total pension fund savings as a lump sum in cash. By law, the other 2/3^rd of your pension fund gets moved to a living/life annuity and will be paid to you monthly.

Four important things to remember
Once you retire it’s difficult to get approval for a loan, so plan accordingly.

Only the first R500 000 of your total pension fund is tax-free. This is a once off tax benefit and doesn’t start over every year.

Not all pension funds are structured the same and may have different benefits. Make sure you understand yours.

The amount you receive per month can be anything between 2.5% – 17.5% of your living annuity.

Your finances and income opportunities

Retirement means you stop working, but your money doesn’t have to.

Five things to keep in mind
You can look into low-investment business ideas.

You can look into dividend income funds and stock/bond index funds.

Tax free investment accounts are only tax free up to R33 000 income a year.

You should always keep a reserve account for emergencies.

You don’t have to spend your full pension fund income every month. Saving responsibly still applies after retirement.

How you want to live

Retiring doesn’t mean you can sit back and forget about making money. There are lots of opportunities to grow your retirement income. A financial advisor will help you play it smart with your plans and your money.

Your house

You could be spending too much on where you live. Capatalise on your assets by selling or renting out the big family home. Or you can consider a retirement village – this also becomes a great way to interact with a new social group.
Your car

Cars are not a good investment, so if it’s not essential for you to buy a new one, then don’t. After all, experiences are far more valuable than possessions, so spend your money wisely.
Activities
Retirement should be enjoyed. Keep your mind busy and your body active is the best way to live. Consider the following, and keep a good balance between indoor and outdoor activities:

Sports and other physical activities.

Creative activities where production meets imagination.

Intellectual stimulation like learning a new language or applying for an online course.

Spiritual pursuits like meditation and soul enlightenment.

Social interactions with family, old friends and new friends.

Volunteer work or part time jobs like mentoring, tutoring or even politics.

Travel. Get to know more of your own country and explore the rest of the world as much as you can.