In South Africa, people have many options to save money for when they retire. These options are called retirement financial products. Four examples are retirement annuities, preservation funds, living annuities and life annuities.

– Retirement annuities: These are private pension plans that can be set up by individuals to save money for retirement. Contributions to retirement annuities are tax-deductible, with limits set annually by the government.

– Preservation funds: These are investment vehicles that allow individuals to preserve their retirement savings when they change jobs. Contributions to preservation funds are also tax-deductible within certain limits.

– Living annuities: These are investment products that provide retired individuals with a regular income stream. The income amount is determined by the underlying investments within the annuity, and the investment risk is borne by the retiree.

– Life annuities: These are insurance products that provide retired individuals with a guaranteed income for life. The income amount is determined by the purchase price of the annuity, and investment risk is borne by the insurer.

The retirement landscape is constantly evolving, and it’s important to seek professional advice when choosing the right financial product to meet one’s retirement needs.