Retirement Annuity

A tax-efficient investment, designed for individuals and employees wanting to supplement their workplace retirement fund. Similar to provident and pension funds, retirement annuities are registered under the Pension Funds Act.

What is it?

A tax-efficient investment, designed for individuals and employees wanting to supplement their workplace retirement fund. Similar to provident and pension funds, retirement annuities are registered under the Pension Funds Act.

Why do you want one?

South Africans are allowed to invest up to 27.5% of their taxable earnings towards a retirement annuity. This makes it a great investment option. It is inaccessible before the age of 55 which will mean you can’t eat away at your investment prematurely. There is also complete flexibility in the contribution plan including:

  • Monthly contributions
  • Quarterly contributions
  • Annual contributions
  • Ad hoc contributions

This makes it an ideal fund for those earning irregular bonuses, incentives and commissions.

Do you need it?

Yes, if you are self-employed or want to supplement your workplace retirement fund. It’s especially useful if you’re behind on your retirement savings. It’s a great fund to store commissions, interest or rental income that is generated over and above your pensionable income.

How much does it cost?

Retirement annuity packages differ by provider, but most require either a minimum monthly contribution of R500 or a once-off, minimum payment of R20 000. Investment fees are charged as a percentage of the fund and are disclosed before setting up the RA.

How can we help you?

We offer free consultations to set up your retirement annuity fund.

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