Services

Retirement Planning

Without a doubt, one of the most important decisions one can make in life…

Ensuring provision of adequate capital reserves at retirement by structuring a retirement plan, setting it in place and sticking to it – allows you to maintain your acceptable standard of living (post retirement), in line with your retirement income objectives.

By putting away as much as you can as early as possible. You reap the rewards! By starting earlier, it will allow you to gradually increase your premiums over time – whilst taking advantage of the compounding effect of portfolio returns – TIME VALUE OF MONEY.

Take an active interest in your retirement savings, and remain focused! The costs of saving too late (or too little) towards your Retirement could mean a huge capital gap at retirement for you – CAN YOU AFFORD THIS?

PRE-RETIREMENT PLANNING

The objective is to build up as much Pre-Retirement wealth as possible to sustain your income and current lifestyle after you retire.

Stay committed to your Retirement Plan – The Benefits:

  • Tax savings through Retirement Annuities
  • Tax savings through appropriate Investment structuring
  • Tax savings through product strategies
  • Annual pre-retirement capital adequacy assessments

If you are employed by a company, you may contribute to their Pension or Provident Funds (subject to company rules).

All employee contributions to the Pension and Provident Funds are tax deductible up to an amount equal to 27,5% of your gross remuneration or net income (whichever is greater), subject to an annual limit of R350,000.

Not every employer offers you a Pension or Provident Fund, or alternatively, you may be contributing to the company fund but feel that you are not maximising your tax-deductible contributions, if the above is the case – then speak to us about the suitability of a Retirement Annuity option for you.

The objective of an RA is to maximise your tax-deductible contributions, whilst minimising your potential tax liability, in the process.

Why an RA?

  • One of the most comprehensive tax efficient investment vehicles
  • Investors have the choice to either contribute monthly contributions or Lump sum investments
  • The proceeds can only be accessed after the investor reaches the age of 55, which makes saving for retirement very effective
  • RA’s are safeguarded for investors and/or beneficiaries of the fund via The Pension Funds Act
  • On retirement you can only withdraw up to one-third of your RA as cash and the two-third portion must be transferred to a Retirement Income product – as advised by us

Pension Preservation & Provident Preservation Funds are created to preserve your Pension or Provident Fund benefits (from your employ) for retirement, by keeping the funds invested and protected in an appropriate tax-efficient investment.

Funds can be transferred to a Preservation fund in the event of dismissal, retrenchment or resignation.

This solution offers the benefit of beneficiary options and protection from estate creditors.

On Retirement, you, as the Investor has the choice to commute these retirement savings (subject to The Retirement Benefit Tax Tables) or transfer the savings to a Living Annuity and/or Life Annuities.

POST-RETIREMENT PLANNING

On retirement, you need to invest at least two-thirds of your Pensions (and Retirement Annuities) in an Annuity Income Solution in order to earn a regular income to sustain you through your retirement years.

  • Allows individuals to draw income, whilst at the same time allowing the capital value in the Unit Trust exposure to gain market-related growth
  • Should your financial situation change, you are able to transfer the Living Annuity into a Guaranteed Annuity to receive a fixed Income annually
  • Income drawdown flexibility within the prescribed drawdown limits of the annual capital value
  • Limited to annual income review changes

Benefits:

  • Flexibility
  • Option to nominate beneficiaries to receive the full benefit on death
  • Tax effective
  • This solution will pay the annuitant a set amount of income until date of death. Once the annuitant passes away, the annuity and capital value will cease
  • Provides the Annuitant with the option to increase the annuity by a fixed rate annually or have the annuity remain the same throughout his/her lifetime