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The below is a basic scenario I recently worked on for a client. The individual had around R7mil in the specific Retirement Annuity and needed R55k per month after tax as income from it. One of his concerns was if he should take the 1/3 lump sum allowed or if he should reinvest his entire retirement savings in a post-retirement structure. The below looks at these two scenarios. There are many complexities around structures, disallowed contributions, asset allocation and income percentages that are ignored and simplified in this example. Scenario 1: Invest full retirement savings in post-retirement product. First year income: R77 000 (R924 000 annually) After tax: R55 062 (R660 744 annually) Monthly tax payable: R21 938 Scenario 2: Take R900 000 in cash and reinvest in flexible investment. Lump sum after tax: R825 300 Voluntary income from lumpsum : R10 000 (R120 000 annually, no income tax on withdrawal) Retirement Lump Sum tax table: