provident fund
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
Preservation funds are excellent for housing and preserving the proceeds of a pension or provident fund when someone is retrenched, dismissed, or resigns. Upon leaving employment, you can transfer your retirement fund capital tax-free into a preservation fund, where investment
Avoid relying on your spouse to fund for your retirement. Investing towards a comfortable retirement requires careful planning, time, and a commitment to regular saving – and relying on one person to save sufficiently for two people’s retirement can be
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.
