Momentum | Retirement Annuities
By giving your retirement policy money time to grow you benefit from the power of compound interest growth to ensure you’re more financially secure in your golden years.
Retirement annuities also enjoy significant tax concessions from the South African government, helping you to get more from your investment.
- Contributions – you make regular contributions and can add lump-sum contributions at the start of your retirement investment or any time during the term.
- Tax efficiency – your investment contributions are tax-deductible within limits, which means money you would have paid to SARS can now grow in your retirement annuity. Investment returns also don’t attract any tax, making your money grow faster than in most other investment vehicles.
- Flexibility – should you experience financial difficulty, you can skip up to 4 monthly contributions during the term of your investment by making use of contribution holidays. If you are not ready after 4 months, you can reduce or stop your retirement policy contribution without a significant impact on your investment value at the time. But you should try and resume making contributions as soon as possible.
- Loyalty bonus – if you remain invested until the end of your investment term, we will give back most of the retirement planning fees we charged for administering your investment.
- Access to financial markets – you can select from a range of investment funds that are managed by leading South African fund managers.
- Protected investment – your retirement plan money is protected against the claims of creditors. Nobody other than you or your dependants can touch it.
- Estate duty exemption – in the event of your premature death, more money goes to your dependants.
- Cash lump sum – you can take up to one-third as a cash lump sum at retirement. A portion of or the full lump sum may be tax-free.
- Regular income – when you retire from your retirement annuity, you must use at least two-thirds of the proceeds to buy a compulsory annuity. This will provide you with a regular retirement income.