Whatever you do not take in cash from your retirement investments ? and there are some constraints around this ? will not be taxed. This portion will be invested in an annuity that will pay you a monthly income, which will be taxed as an income in your hands.

It is important to bear in mind that any withdrawals taken from your retirement funds when you change jobs before retirement will impact negatively on your tax benefits at retirement.

So, with the above in mind, where is the best place to invest? Channelling the first 15 percent of your gross income towards a retirement fund is always a good, tax-efficient start. Thereafter, your personal tax position will dictate the most appropriate vehicles.

It is, however, vital to remember that the vehicles you choose will have a minimal impact on your investment return. Just make sure that they?re tax efficient, cost-effective and well regulated.

The rest of your return will be up to your investment strategy. If you are disciplined enough to not make emotional decisions when the market plummets in the short term, an aggressive (mostly share-based) strategy will always reward you greatly in the long term. But then make sure that you are prepared to stay there for longer than five years and bite the bullet during times of uncertainty. Allowing short-term considerations to dictate long-term decisions is one of the major reasons that the wheels come off hopelessly for retirement planning.

Choose a sound, solid strategy that you can sleep with and stick to it.

acsis Limited is an authorised financial services provider. The response to the question covers some of the issues in a general and factual manner and does not constitute advice. It is important to consult with a financial planner who, after an analysis of the individuals? personal needs, goals and circumstances, will be able to provide comprehensive and appropriate advice.