Noluntu Bam
June 19, 2018
Let’s Assist You
June 19, 2018

Understanding Y’mani

  • If you are employed, you may be a member of your employers retirement fund and/ or medical aid scheme. The first means you should learn how you can make the pension or provident fund work for you – how certain actions may affect you and your beneficiaries. More importantly, you will need to know what to do when you realise that your employer’s retirement fund may not be sufficient to sustain you on retirement. Similarly with the medical aid, you would need to understand the product and how it can help them and their dependents.
  • Whether you are employed or not, you may be a member of the South African Retirement Annuity Fund (SARAF). We all need some kind of retirement plan but we must carefully select which one will suit our circumstances. If you are a member of the SARAF, you own a retirement annuity (or RA policy as it is more commonly known). We at Y’mani recognise that although most people know something about their retirement plans, there is usually more you need to know and understand, in order to make decisions that are suitable to your circumstances.
  • Some day, you will leave your employer’s retirement fund, whether you have resigned, been terminated, retrenched or retired. In the event of retirement, you need to decide what pension type will be suitable for your circumstances; how much to access as cash, what the consequences of accessing the cash will be to your monthly pension, how much tax you are likely to pay. You need to be fully prepared for these and more. Leaving things to the last minute may be a disservice to you and your dependents. Some decisions may also be irreversible and can be costly.
  • As a self-employed person you may have acquired credit to expand your business and may have committed yourself to other unnecessary and expensive underlying transactions, which, if you had access to the correct information you would not have entered into these arrangements. These additional expensive arrangements may consists of life policies (credit life, a decreasing form of insurance to cover the debt) and policies for your vehicle. Your personal circumstances may dictate that you do things differently.


The first part of this paragraph sets out two aspects: retirement fund and medical aid. This is followed by an explanation of the first aspect – retirement fund.  The reader is still expecting an explanation or scenario regarding the medical aid scheme – i.e. “The second…..”.  Otherwise I recommend deleting “…or medical aid scheme” at the end of the first sentence.


Just a query: I thought RA meant retirement annuity, not arrangement?  This is reinforced by the next sentence where ‘annuity’ is used. I don’t know enough abut this to know whether there are other retirement arrangements or plans other than annuities or RA’s.  But this just needs to be clear in setting out this scenario regarding retirement policies.

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