Having a Retirement Annuity plan is best when we get old – yes, we get old and tired and regardless of that we need a form of income. Investments are a very important part of our lives, and it is not a lot of people who really consider it.
There are a number of companies that offer a range of retirement annuity plans, and in this article, we have our focus on Absa, Hollard, PSG, Liberty, Sanlam, and Old Mutual.
What are Retirement and/or Living Annuity?
Retirement or Living Annuity is an income from a capital investment that is paid in a series of regular payments when you have retired from your work or profession – and hopefully not because of age, but in terms of living and to start enjoying your funds.
Have you considered saving your lump sum or making regular deposits to start investing? Well, you have a number of options to choose from.
7 companies offering Annuity Plans:
We will regularly be adding more companies offering retirements’ annuity plans and so you can have a broader sense of choice when it comes to saving your money. All the companies mentioned here are reputable and can be entrusted with your money, provided that you understand the risks involved if any.
Some investments are a low- to medium risk; some are high risk when some are risk-free and guarantees your returns. Know what your capital could be facing.
1. Absa Retirement Annuity
Absa Annuity plans for retired employees come in different plans to best suit your needs whether you want to make additional provision for your retirement, or have a company pension or not, or provident fund or not. There are packages that are specially designed to satisfy your working conditions.
We are currently focusing on Core Retirement Annuity, Retirement Annuity and living annuity by Absa.
- Core Retirement Annuity
The core retirement Annuity is a low-cost retirement annuity, it is best suited or rather ideal for people without pension or provident fund. You can also have the account to top up your fund. It is based on life-stage investing.
The product features, below industry average annual fees, as you approach your retirement, as each year passes, your investment risks reduce. During your investment plan, you will be able to deduct up to 27.5% of your taxable income per tax year.
This portfolio account provides low investment costs and is made up of low-cost passive investments (e.g. Exchange-traded funds and notes), the longer your retirement awaits, your capital will be invested in shares with a possibility of high returns.
Core Retirement Annuity is transparent, meaning you see and know how your money is invested. You can deduct finds for your contribution for tax. Returns on your investments are not taxed – soon as you retire; there will be a large portion of your cash available to use tax-free. Here them out on 0860 000 005 and speak to a consultant to help with the most suitable account.
- Retirement Annuity
If you are employed and need an additional provision for your retirement you can consider Absa’s Retirement Annuity – even if you do not have a company pension or provident fund, this portfolio is the best ideal for you.
Choose from a broad range of funds and build a flexible portfolio account. “Do tax-free transfers from an approved pension, provident, preservation or other retirement annuity funds”. You can choose a term based on your selected retirement age before the age of 55.
Invest one lump sum Over R10 000, with the amount you, can make monthly contributions of R250 to your retirement fund without any penalties related to minimum investment term, not even the minimum monthly contributions.
You will know what you pay (fees) and investment hence the transparency of the account.
- Living Annuity
Ever heard of a post-retirement investment portfolio? Well, Absa Living Annuity gives offers you to build one by reinvestment you retirement savings for income – at the same time, targeting additional long-term investment growth.
You will be able to choose the portfolio and income requirements that fit your profile. Tax will be paid on received annuity payment. The Absa Living Annuity requires at least R50 000 to be invested.
This comes with death benefits for your beneficiaries; find out more by visiting the nearest branch.
How to Apply for Absa Retirement Annuity plans
To apply for Core Retirement Annuity (0860 000 005), Retirement Annuity and living annuity, make use of the online Absa Retirement Annuity Core Portfolio, Alternatively, you can speak to an adviser by calling 0860 111 630.
Apply online using the following links:
- Core Retirement Annuity Registration and Online Application
- Retirement Annuity Registration and Same as Living Annuity online Application
2. Hollard Living and Retirement Annuity
Hollard Living Annuity
The Hollard Living Annuity offers you an income from your retirement savings, earn regular income during your retirement when you invest your retirement savings. You will not be taxed for investment capital gain, Interest income tax of dividends tax.
Income Taxed is deducted from the annuity before it’s paid. You get diverse investment portfolio options to choose from, you can get from 2.5% up to 175% for your flexible regular income per annum of the value of your investment adjusted best to suit your needs.
It is ideal for estate planning according to Hollard, and the minimum investment amount is R50 000 lump sum and there are no admin fees, however, you will be charged Management fees. Financial Advisors are paid a maximum initial fee of 1.5% excl. VAT, and the annual fee of 1% excluding VAT. Income to investors is non-guaranteed, but it’s best to visit the Hollard Living Annuity Page to learn more.
Hollard Retirement Annuity
In Regard to Hollard Retirement Annuity, you will be able to invest for retirement; you can save your funds in a tax-efficient manner or in addition to employer pension or provident fund. Your returns will not be subjected to Capital Gains Tax, Interest Income Tax of Dividends Tax; however, tax is deductible when it comes to contributions.
You can choose from a range of investment portfolios with flexible contributions without penalties, you can get up to 1/3rd of your investment in cash. Your investment will be protected from high-risk assets in accordance with Regulation 28 requirements.
The minimum investment amount is R50 000 Lump Sum or R500 recurring investment (As a debit order). There are no admin fees, and you will be charged an initial management fee. The Financial Advisor is paid a maximum fee of 3% excluding VAT with the Hollard Retirement Annuity as well as an annual fee of 1%. This type of investment is not guaranteed, the market as we know it fluctuates and thus, the portfolio carries the possibility of losing capital, it’s best to visit the Hollard Retirement Annuity Plans Page, for more information.
How to apply for Hollard Living and retirement Annuity
- All you have to do is to apply is to fill a relevant form, print and complete the form
- Attached required documents, if you are new, FICA documentation is required
- Email your completed form to email@example.com alternatively, you can fax your documents to 011 351 3816
Contact Hollard on 0860 202 202 if you have any queries
3. PSG Retirement Annuity
PSG Retirement Annuity is your personal savings portal that offers a range of tax-efficient packages, which are highly beneficial.
There are a number of contribution amounts that can be claimed back from SARS. There are also tax-free interests up to a certain amount at retirements as well as the growth of your investment annuity is tax-free. This kind of investment lets you invest until the age of 55.
When making contributions, they can be randomly, or by debit order or you can contribute a lump sum and watch as your investment grow.
When choosing a PSG retirement Annuity, please ensure that you adhere to limits set by Regulation 28 of the Pension Funds Act. You can choose from unit trusts, hedge funds, shares and more selection from the Private Share Portfolio.
The minimum investment amount can be a lump sum of R20 000 or contribute a minimum of R500 per month through debit order.
For more information and to apply, visit the PSG Retirement Annuity Page, FAIS affiliates of the PSG Konsult Group are authorized financial services providers.
For more investment products visit PSG Investment Page
4. Liberty Living and Retirement Annuity
If you have taken a step to invest your money, probably Liberty was the first company you thought of as it’s an old and most reputable registered Long Term Insurer and an Authorized Financial Services Provider in South Africa.
- Liberty Evolve retirement annuity plan (For Individual)
There are a number of different retirement annuity plans that are offered by Liberty one of which is Evolve retirement annuity plan which allows you to provide for your retirement or just to supplement your existing plan.
- There are no set-up fees
- No initial advice fees (However, when Liberty starts earning you more than 14% a year, you will start to be charged)
- The number one objective is the growth of your money
- Only access your benefits from age 55
- Invest from R150 000 Lump sum or R100 000 recurring investments of from R400 a month
- Fees charged are a percentage of your investment in each year (Fees include charges for the platform, portfolio, ongoing advice fees, and guarantee fee only if applicable)
- Liberty Living Annuity Plan (for an Individual)
When you have finally retired, as a retiree, you have an option to reinvest your capital and general a steady income at prescribed portions/rates limits of 2.5% to 17.5% (This will ensure your portfolio keeps up with inflation)
Liberty allows you to take part in high performing funds, at the same time, as it may involve a lot of risks, Liberty will reduce that with a Liberty return guarantee.
When your return is 0, the maximum return can drop is by 20% and 80% of your aggregate return is protected when making use of the “Liberty Return Guarantee”. As your return increases, the Liberty Return Guarantee Level also increases for 5 years.
You get to choose to invest in over 190 funds, including offshore and tracker funds. The Liberty Return Guarantee can be removed any time you feel like.
When applying for the Living Annuity Plan, you will be charged a once-off initial fee, which is 1% of your investment amount, negotiable advice fees, platform fees, etc.
5. Sanlam Retirement Annuity
Sanlam gives you an opportunity to save your money in an annuity, and so you and your family can receive an income regularly for the duration of your retirement even when you pass on, your family or dependents will be in good hands with the Sanlam retirement income
- Sanlam offers Investment-Linked Lifetime Income Plan, where you can contribute a minimum of R250 000 lump sum, this is a lifetime plan, for as long as you live – features include getting the certainty of a lifelong retirement income that is linked to the growth of an underlying investment portfolio.
- Sanlam also offers a Glacier Investment-Linked Living Annuity, this plan, allows you to contribute a minimum lump sum of R100 000 + ad hoc contributions of R15 000, and runs for a lifetime. One of the features includes deciding how your retirement savings are invested, and you also get to decide your income each year.
- The 3rd option is Sanlam Life Annuity which is also a lifetime plan and lets you contribute an amount that’s enough to at least provide an income of at least R100 on a monthly basis.
6. Old Mutual Retirement Annuity
The minimum Lump sum for the Old Mutual Retirement Annuity plan is R10 000, whereas the minimum monthly investment amount is R500 and the Ad hoc minimum amount is R1 000. One of the most affordable retirement annuities offered by Old Mutual is Old Mutual Unit Trusts Retirement Annuity Fund (OMUTRAF). There are no additional fees and charges; you only pay for the chosen unit trust. Start investing online with Old Mutual.
Savings are flexible, you can save funds as often as you can without any penalties. Invest and have access to Old Mutual’s best performing unit trust funds.
Contributions are tax-deductible and capital increase in the value of your units is tax-free. Your investment will only be accessed when you retire.
7. Discovery Retirement Annuity
Discovery goes beyond following accepted customs when it comes to their retirement solutions. You get rewarded for managing your money and your health. Here we will be discussing Retirement Annuity Plans, Income Plans, and Optimizer Plans by Discovery.
Discovery Retirement Annuity Plans
This is the investment that will help you save for your retirement, and it has tax advantages, you have the choice to make contributions as a lump sum or recurring.
Discovery will reward you for investing for a longer period, living a healthy life and investing more, as such you will grow your investment to the level you desire. If you are younger than 30 the minimum lump sum is R5 000, if you are over 30, R60 000 is the minimum lump sum for your investment.
Making extra contributions is allowed. You will be charged fees for, Discovery, Financial Adviser, and investment manager. There are no performance guarantees. Your investment growth is tax-free and your contributions can be deducted from your taxable income. Read the Retirement Annuity Plans Brochure or visit the Discovery Retirement Annuity Plans Page to find out how to protect your investments.
Discovery Retirement Income Plans (Living Annuity)
This is a retirement plan that is designed to give you a regular income for the duration of your retirement. You will be able to manage your retirement savings, for a linked annuity and with a fixed annuity, your income will be in retirement.
The Living annuity gives you the opportunity to choose your own income, and still get rewarded for taking care of yourself and managing your funds. You can receive boosts to your retirement income of up 50% for life.
The minimum investment amount is R60 000 lump sum for a linked annuity, extra contributions are allowed. You will be charged fees for, Discovery, Financial Adviser, and investment manager. There are no performance guarantees. Your income payments are is taxed as gross income. Read the Retirement Income Plans Brochure or visit the Discovery Retirement Income Plans Page
Investments are very important – it is often great to look into the risks involved. However, Retirement Annuities are very vital in our lifetime, it is better to start now, and secure your savings for when you have retired at age 55, and start living off your savings for a lifetime.