One of the most important and often most overlooked questions people should ask themselves as they approach retirement is this: “How do I turn my life’s savings into a reliable monthly income?”

It’s not just about how much you’ve saved although, of course, that matters. It’s also about how you convert your accumulated capital into a sustainable income. “You don’t want to start planning five weeks before you retire,” says JB Smith, Asset Execution Executive at advisory firm NMG Benefits. “You want to give yourself a good five years and more. That’s the realistic way to make strategic decisions with the help of a financial adviser.”

The two main options available are a life annuity or a living annuity, and both come with benefits and risks.

A life annuity is more predictable option. It’s an insurance product that guarantees you a set income, how the markets perform. “

A living annuity gives you much more flexibility. You choose how much you can draw out every month, decide how the underlying capital is invested, and any remaining funds will transfer into your estate or nominated beneficiaries when you pass away.

“This is a good option for people who want more control and are comfortable managing some level of risk. Your money stays invested, so it has the potential to grow and keep pace with inflation – but this means it can also shrink, especially if markets dip or you take too much out, too quickly.”

Many South Africans also hold investments outside of their formal retirement funds, such as unit trusts, tax-free savings accounts, and fixed deposits. These assets can play a valuable role in supplementing your retirement income, but they also need to be structured correctly.

“It’s not just about your retirement fund,” Smith emphasises. “You have to look at your whole portfolio as one ecosystem. Everything needs to work together to support your lifestyle goals, but this is where professional advice becomes critical. An adviser can help you optimise your tax position, time your withdrawals, and build a plan that aligns with your immediate needs as well as your long-term goals.”

Retirement isn’t just a date in the calendar. It’s a new phase of life that demands thoughtful planning long before you receive your final salary. And, it’s not just about picking products. It’s about creating a holistic plan that gives you confidence, security, and freedom.

“A registered, qualified financial adviser, like those at NMG Benefits, will help you structure a sustainable retirement income plan that supports the lifestyle you’ve worked for,” says Smith.