retirement annuity
A significant advantage of a life annuity is that the policyholder is guaranteed an income for the rest of her life and will therefore never run out of money, regardless of what happens to investment markets or how long she
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
Once you’ve maximised your retirement fund contributions, consider enhancing your long-term savings by investing through a tax-free savings account (TFSA). Or, if you already have a TFSA in place, consider maximising your annual allowable contributions.
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
Contributions to approved retirement funds are tax deductible up to a limit of 27.5% of taxable income, capped at an annual limit of R350 000, but this does not mean that you can’t contribute more without still reaping tax benefits.
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.
As an individual investor, you are free to construct a portfolio that is fully customised to your needs although you will be limited by the provisions of Regulation 28 as mentioned above. This piece of legislation is designed to protect
Except in the case of ill-health or emigration, investors can only retire from a retirement annuity from age 55 onwards, although they are entitled to stop contributing towards their RA at any stage without fear of early termination fees or
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
Upon the death of the member, the RA fund trustees are required to undertake an investigation to identify the dependants and nominees of the deceased, decide on an equitable distribution amongst those identified, and determine how the payment should be
