Regulation 28
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
key function of a multi-manager is to research and analyse the various funds offered by the different asset managers, and then build a portfolio in line with a specific investment mandate. A multi-manager does not handle invested funds but rather
Living annuities do not fall under the scope of the Pension Fund Act and are therefore not subject to Regulation 28 and, as such, there is no limit to the amount of foreign exposure you may hold in your living
If you are an individual investor, you can use your annual capital gains tax exemption, being the first R40 000 of gains made on your investment portfolio, to rebalance their portfolios if necessary.
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
As draw-downs from a living annuity are limited to between 2.5% and 17.5% of the value of the investment per year, many investors use the one-third withdrawal option strategically to ensure that they don’t run into cashflow problems later in
f selecting a fund or combination of funds is overwhelming, you may want to consider using a multi-manager. Asset management and the selection of underlying unit trusts require an enormous amount of expertise and skill, and a multi-manager approach has
Investors are permitted to take out as many retirement annuities as they like. However, the tax benefit is calculated in aggregate and not in respect of each retirement annuity. Similarly, the tax-free portion at retirement may only be claimed once.
One of the most significant advantages of a preservation fund is that you are permitted to make one full or partial withdrawal from the fund before age 55. If there is a likelihood that you may need access to your
Through the retirement fund harmonisation process, the options at retirement have been streamlined across pension, provident and retirement annuity funds, although there remain certain technicalities when dealing with the vested benefits in respect of provident fund contributions made prior to
