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5 ways to use your nest egg wisely

By March 20, 2018November 21st, 2022Newsletter

5 ways to use your nest egg wisely

March 20, 2018


For many people their ‘nest egg’ is their retirement annuity, which they have been saving for their entire lives. The term ‘nest egg’ originates from the United Kingdom and United States in the 1600s and refers to a large amount of money saved for the future, often life savings. The original ‘nest-egg’ was a fake ceramic egg that was added to a hen’s egg to encourage her to lay more eggs.

While the connection between the modern term ‘nest egg’, referring to a sum tucked away in retirement savings, and the old ceramic ‘nest egg’ might not immediately be clear – the association exists between the fact that both ‘nest eggs’ ensure ‘growth’, one in the terms of money, the other in terms of eggs.

You can access your nest egg today

What many South African expats living abroad might not realise is that you can access your retirement annuity today, even before you turn the age of 55! This opportunity exists because of a change to South African tax legislation in 2008. What’s more, you can use the funds for any purpose – which opens up a realm of possibilities. Here are some wise suggestions about what you can do with your nest egg:

  1. Invest in your accommodation

Investing in property abroad can be a wise decision – especially if you are seeing growth in your area and if rent is draining your monthly income. You can use your retirement annuity as a down payment to reduce your bond, or if it is large enough, to purchase the entire property. Not only will you be living bond-free, but you will also have an investment that is free from any currency fluctuations.

  1. Invest in your memories

If you are not relying on your South African retirement annuity to fund your retirement, you can use your money to make some of your bucket list destinations a reality. One of the most economical ways of doing this, is by planning a round-the-world trip – and when you are finished, you will have memories that you’ll cherish forever.

  1. Invest in education

Once again, if you don’t need your retirement annuity to fund your retirement abroad, you can invest it in something worthwhile – like furthering your own education in order to enhance your overseas earning power. If you have enough accolades to your name, you can use it to fund your children’s education abroad and give them a great start in life.

  1. Invest in your health

A little bit of money can go a long way to improving your health and your quality of life. Many people put off certain life enhancements – like gym memberships, a personal trainer, health check-ups, the advice of a nutritionist, and even a monthly massage or facial, due to lack of available income. Now you can give yourself the pampering you deserve and enhance your lifestyle.

  1. Invest wisely abroad

If you are counting on your South African retirement annuity to help fund your retirement, it makes sense to invest it wisely in a similar product in your new home country. This way you will be free from the risk of any fluctuations in the South African rand, and you can consider investment products that you might not have access to in South Africa.

For more information about how to cash in your retirement funds before the age of 55, contact us today.