Estate planning in retirement
How to protect your family and legacy
By Wouter Fourie (CFP®)
Director of Ascor® Independent Wealth Management.
Wouter Fourie is Past winner of the FPI Financial Planner of the Year competition and the co-author of The Ultimate Guide to Retirement in South Africa
A complete retirement plan goes beyond income, it protects your assets and loved ones, reduces tax while also avoiding disputes.
A comprehensive estate plan not only preserves your wealth but also ensures your retirement savings reach the right hands.
When most people think of retirement planning, they focus on income: How much can I draw? Will my money last? But a complete retirement plan goes further. It also answers:
What happens to my assets, my income streams, and my legacy when I’m gone?
Estate planning is not just about death, it’s about ensuring that during your lifetime and afterwards, your family is protected, your assets are used wisely, and your wishes are honoured.
At Ascor® Independent Wealth Managers, we’ve seen how a well-prepared estate plan can spare families unnecessary conflict and costs. We’ve also seen how overlooking this crucial step can undo decades of careful saving.
Why estate planning is essential in retirement
By the time you retire, your financial life is often at its most complex:
You may have a mix of living annuities, retirement funds, discretionary investments, and property.
You may have adult children, grandchildren, or even dependnts with special needs.
You may want to leave a legacy to charities, trusts, or future generations.
Without a clear estate plan, these intentions can become bogged down in delays, tax inefficiencies, or disputes.
Key elements of retirement estate planning:
An updated will
A will is the cornerstone of your estate plan. Yet too many retirees have outdated wills that no longer reflect their wishes or family circumstances.
Have you accounted for new grandchildren?
Has your marital status changed?
Do your executor and guardianship choices still make sense?
A will should be reviewed at least every two to three years.
Beneficiary designations
Retirement funds and living annuities don’t always follow your will. Pensions, provident funds, and annuities often pay directly to nominated beneficiaries, guided by fund trustees in line with South Africa’s Pension Funds Act.
This means:
Outdated or missing beneficiary nominations can cause significant delays.
Trustees may allocate benefits differently from what you intended if your nominations aren’t updated.
Living annuities vs. Life annuities
With a living annuity, your beneficiaries inherit the remaining balance. With a life annuity, income usually ends when you pass away (unless certain guarantees are built in).
This distinction matters when deciding how to provide for a surviving spouse or children.
Tax and estate duty planning
Estate duty, capital gains tax, and income tax can all reduce the value of what you leave behind. Proper structuring, such as using inter-spousal rollovers, trusts, or donations, can minimise the tax burden and maximise what reaches your heirs.
Special trusts and vulnerable beneficiaries
If you have a dependent with special needs, a special trust can ensure they are cared for while enjoying favourable tax treatment. Without this, their inheritance could be mismanaged or heavily taxed.
Common mistakes in retirement estate planning
Assuming your will covers everything. Some assets bypass your will entirely.
Not updating beneficiaries. Outdated nominations are one of the biggest causes of estate disputes.
Ignoring liquidity. Your heirs may inherit assets but no cash to pay debts, taxes, or living expenses.
DIY estate planning. Without professional guidance, you risk unintended tax consequences or legal challenges.
Why independence matters
Estate planning is not just about products, it’s about strategy. You need someone who can look across your full financial picture and provide advice without bias.
At Ascor®, we are fully independent, meaning we don’t promote particular products for commission. Instead, we create estate plans that reflect your unique circumstances, wishes, and family needs.
We are proud to have been the first firm in South Africa recognised as an FPI Approved Professional Practice™, a distinction now held by only 20 firms nationwide. This recognition reflects our long-standing commitment to ethical, transparent, and client-first financial planning.
What you can do now
If you’re retired, or approaching retirement, here are steps worth taking today:
Review and update your will.
Check and update all beneficiary nominations.
Discuss liquidity needs with your financial planner.
Consider whether a trust structure would benefit your heirs.
Speak to a Certified Financial Planner® about the tax and estate duty impact of your current arrangements.
In closing
Retirement is about more than making sure your money lasts for you. It’s also about ensuring your family and legacy are cared for when you’re no longer here.
Estate planning in retirement is not a once-off exercise. It’s a living part of your financial strategy, one that should evolve with your life, family, and goals.
The Ultimate Guide to Retirement in South Africa covers estate planning in depth, with tools and examples to help you start the conversation.
Or visit www.ascor.co.za to speak with one of our Certified Financial Planners® about building an estate plan that protects your loved ones and secures your legacy.
This article first appeared on moneyweb.co.za at https://www.moneyweb.co.za/financial-advisor-views/estate-planning-in-retirement-how-to-protect-your-family-and-legacy/
Contact Ascor®Independent Wealth Managers for retirement planning advice.
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