Top Highlights

• The reason why the amount is lower than your final salary is that it is assumed by the industry that most people require less money in retirement. The reasons for this include that you will no longer be saving for retirement; that there is greater tax relief for pensioners of 65 and older; that you should have paid off all your debts; and that work...
• •        A realistic best-scenario retirement income that will meet your desired lifestyle in retirement (a ‘wants’ list). •        A basic minimum level of income that will cover the essentials (a ‘needs’ list). Your retirement planning should always aim to provide at the ‘wants’ level, but there should never be a risk that your replacement ratio ...
• From a tax point of view, you never have to draw a pension from a tax-incentivised retirement fund, an occupational retirement fund or a retirement annuity fund.
• You can contribute to a tax-incentivised retirement fund until the day you die.
• You can realise tax benefits earlier in some cases without stopping work. For example, you can mature a retirement annuity at age 55 to get the tax-free lump-sum benefit early. You may then retire from your job at the normal retirement age. You can still continue to contribute to a new retirement annuity, even using the money you received as a tax-...