preservation fund
If you are declared insolvent, Section 37B of the Pension Funds Act provides that the funds in your retirement annuity are protected from your creditors, although this does not mean that your RA funds enjoy complete protection from creditors.
When calculating your taxable income, it is essential to consider various income sources, including rental income, dividends from real estate investment trusts (REITs), and investment income.
When purchasing a life annuity, the insurer assumes full responsibility for paying the annuitant’s income. The annuitant has no control or visibility over how the capital is invested or what returns the insurer earns.
The 2023 10X Retirement Reality Report reveals that 71% of respondents are partially or strongly of the view that they will need to continue earning a living after their formal retirement date.
When a member leaves their employment, they have the option to leave the accumulated capital in the employer’s default investment strategy until retirement. The member also has the option of transferring the funds on a tax-neutral basis to a retirement
Endowments also offer tax benefits to investors with a marginal tax rate of more than 30% as they effectively reduce the tax payable on investment growth. However, they require a minimum investment term of five years, allowing for one withdrawal
Children under 18 cannot inherit lump sum payouts or other assets directly, as they lack the legal capacity to manage such assets. Therefore, if you intend to name a minor child as a beneficiary of a life insurance policy or
A continuation option allows you to convert your group life cover into personal cover within 60 days of leaving your employment without having to undergo medical underwriting which means that you are likely to enjoy more favourable premiums.
Funds held in retirement annuities do not form part of one’s deceased estate meaning that RAs can play a role in your overall estate plan, although it is important to understand the associated idiosyncrasies. This is because retirement annuities, being
A notable feature of LISP-based retirement annuities is that they are transparent, flexible investments that, unlike insurance-based RAs, allow investors to completely customise their contributions.
