South Africa: How to make the most of your options after inheriting a retirement annuity

Question: I will be inheriting a retirement annuity from my late father. What are the options open to me?

Answer: A retirement annuity is classed as a pre-retirement product. So, what I say will also be true for a pension fund, provident fund or preservation fund.

With such a product, the trustees of the fund are required by law to ensure that the proceeds are distributed fairly among any dependents. They need not follow the beneficiary nomination in the original contract. 

The proceeds…