At a recent Investment Forum, EasyRetire CEO Deresh Lawangee shared a practical framework that’s been evolving since 2006. It’s not prescriptive. It’s not a magic formula. But it’s one way to think about how you might order your money decisions, based on tax efficiency, costs, and growing flexibility over time.
We call it The Waterfall. It’s been designed with South Africans in mind, mapped to the Easy ecosystem.
Start with your workplace retirement fund and top-up contributions
Maximise the tax benefits available inside formal structures.
Layer in a TFSA
Add flexibility with tax-free growth.
Build local exposure with ZAR equities
Invest in rands to align with local needs and goals.
Add global diversification with USD and other global wallets
Broaden your opportunity set beyond South Africa.
(Optional) Add a small crypto sleeve
Consider a disciplined approach to digital assets. As always, remember to know your risk and to do your research before investing.
Plan ahead for income in retirement
Decumulation (turn savings into an income: Retirement Annuity, Living Annuity, Preservation Provident Fund or a Preservation Pension Fund
This kind of structure puts tax benefits and cost control up front, then adds more optionality as you move along. That may resonate if you:
Want to reduce drag from tax and fees early on
Prefer to build flexibility over time
See value in starting local, then expanding globally
Are looking for a way to make long-term decisions repeatable
Again, it’s not a rulebook. Just a way to think about the building blocks.
Step 1: Workplace Retirement Fund + Additional Contributions
Your workplace retirement fund (often called an Occupational Retirement Fund) is usually part of your employee benefits, offering tax advantages and lower fees. You can also make additional top-up payments called additional voluntary contributions or AVCs to take full advantage of the tax-deductible allowance of up to 27.5% of your income (subject to SARS limits).
Step 2: Tax-Free Savings Account
After-tax money goes in. Growth, income, and withdrawals? All tax-free.
Step 3: ZAR Equity Portfolio
Use local ETFs to build wealth in rands, aligned with your South African expenses and goals.
Core: Low-fee ETFs like the Top 40 or Capped SWIX.
Add-ons: Dividend, value, sector or thematic ETFs.
Optional: A small sleeve of hand-picked shares (keep the risk tight).
Step 4: USD (Offshore) Discretionary Portfolio
Offshore investing can offer currency diversification and access to sectors underrepresented locally like global tech or healthcare.
Step 5: Crypto Overlay (Optional)
Some investors add a small “digital gold” sleeve like Bitcoin or Ethereum, but sizing, rules, and platform safety matter.
Sizing depends on risk appetite: 0–2% (low), 2–5% (moderate), 5–10% (only for robust strategies)
Step 6: Decumulation or Turning Capital into Income
As you approach retirement, converting capital into income becomes a key shift. You might combine living and guaranteed annuities to suit your lifestyle and risk tolerance.
Routes at retirement
Tip: As retirement nears, align accumulation portfolios with the chosen income route (e.g., introduce inflation-linked bonds or cash buffers to reduce sequence risk).
This is just one part of the bigger financial picture. It doesn’t cover:
Pension-backed home loans or housing support
Life,disability, income protection
Other employer-provided benefits
Those can be added separately with the right guidance.
Check if you're making the most of your workplace fund and top-up contributions toward the 27.5% cap (as affordability allows).
Fund your TFSA each year.
Build a ZAR core or local exposure, then diversify globally.
Only add crypto if it fits your plan.
Don’t wait too long to map out a retirement income strategy.
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