How annuities have evolved

Things have changed dramatically since the early days of RAs.

- Hardi Swart

Retirement annuities (RAs) have long been a subject of debate among South Africans planning for their retirement. I'm reminded of my own father, who had a deep distrust of retirement annuities due to a bad experience early on.

Back in the day, RAs were often tied to expensive, inflexible insurance-based products that left little room for customization or transparency. My father had invested in one of these policies, and the high fees, restrictive terms, and lack of clarity left a lasting negative impression. He hated RAs and warned me to steer clear of them.

But things have changed dramatically since those early days, and today's RAs are a completely different story. The evolution of RAs has made them one of the most powerful tools in your retirement planning arsenal.

Let's explore how these once-maligned products have transformed into flexible, tax-efficient vehicles.

RAs today