Retirement planning for financial independence: exploring different investment vehicles from a tax benefit perspective

Mthembu, Zizile
Journal Title
Journal ISSN
Volume Title
Planning for retirement is an important step in the lives of South Africans, whether they are employed or self-employed. The Labour Relations Act 66 of 1995, of South Africa, does not specifically prescribe the age of retirement, however the normal age of retirement for employed individuals is generally between the ages of 55 and 65 years, depending on the industry and the rules of the retirement funds involved (Western Cape Government, 2018). This study evaluates the different investment options available to the ordinary South African in planning towards his or her retirement. It focuses specifically on three investment vehicles, namely, Real Estate Investment Trusts (REITs), retirement annuity funds and offshore endowment policies. The study examined the characteristics of these investment vehicles, the tax benefits available, the risks involved and how to use those returns to ensure a financially independent and sustainable life during retirement.
A research report submitted partial fulfilment of the requirements for the degree of Master of Commerce to the Faculty of Commerce, Law and Management, Wits School of Accountancy, at the University of the Witwatersrand, Johannesburg, 2022