cannot outlive the regular monthly pension income on a conventional
life annuity. Income will be received for as long as you live.
||It is an
appropriate way of guaranteeing retirement income. You can retire
from your retirement annuity fund at any time between the ages
of 55 and 69.
are tax deductible within limits, which means SARS pays part
of your premium thereby encouraging you to save for your own
retirement. Depending on your marginal rate of tax, this can
be up to 40 % of your contributions. You are therefore converting
income tax into future retirement income.
options are available at maturity. Generally, one third of the
Capital Amount can be taken in the form of a lump sum, whereby
the first R120,000 is tax free in terms of current tax legislation.
The balance of the two thirds must be used to purchase a compulsory
pension with any registered assurer who will provide the monthly
income. If no lump sum is chosen, a higher pension will be receivable.
It can be tailor made to suit your needs.
are highly flexible. Premiums can be increased or decreased
and additional single amounts can be injected into the policy.
It makes no difference if you change your job, stop working
or set up your own business. Your RA continues to build benefits
it has no loan value, money you invest in an RA is secure against
insolvencies. It is protected by legislation and cannot be attached
pension income minimises financial dependence on your children,
the government, family or friends.