When approaching retirement, many people are faced with difficult choices regarding which product to use to provide them with an income once they stop working. If you are a member of a retirement fund (pension, provident, preservation or retirement annuity), you must use at least two-thirds of your fund proceeds to purchase an annuity at retirement. This annuity will provide you with a regular income for the rest of your life. Not only should the level of income be sufficient to provide for your needs, but it should also be sustainable and able to keep pace with inflation.