10X Investments


"The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002."

  1. What reports can participating employees expect from the 10X Group RA?

    10X issues regular performance updates:

    • Benefit statements: The year-to-date benefit statement is updated weekly, and published online on the 10X investor portal. It is emailed to members annually. The information is presented in a clear and simple manner, to avoid confusion.
    • Investment report: This is published online every month and details the investment returns of all life stage portfolios and asset class benchmarks (equities, bonds, property and cash).
    • Quarterly Investment Newsletter: This is emailed to the member
    • Investor portal: This 10X portal gives members access to all their investment plan details (including benefit statements and investment reports).
  2. What is the cost of a 10X Retirement Annuity?

    10X does not charge an administration fee on its Group RA.  10X only charges an investment management fee that is calculated as a % of the investment value.  This fee reduces as participating employee’s investment value grows and is a maximum 0.9% (ex VAT). See 10X Retirement Annuity Fees.

  3. What is the minimum size and contribution for a 10X Group RA?

    10X facilitates Group RAs if, at commencement:

    • At least ten employees participate
    • Every participating employee agrees to contribute at least R500pm
    • The total monthly contribution is at least R10,000
  4. What is the minimum contribution term for a 10X Group RA?

    There is no minimum contribution term.

  5. What is a retirement annuity (RA)?

    A retirement annuity (RA) is a tax effective investment vehicle enabling individual investors to provide for their retirement. Learn more with our Retirement Annuity FAQs.

  6. What is a Group RA?

    A Group RA is the same as an individual RA, except that the employer facilitates the payment of contributions to the selected RA administrator through the company’s payroll system. Therefore, if the individual leaves the company there is no need to transfer the retirement savings as it is already in the individual’s name.  The individual is also able to continue contributing if they wish to.

  7. Who should consider a Group RA?

    A Group RA is suitable for businesses or companies seeking to offer their employees a formal retirement fund and who:

    • Have relatively few employees and cannot justify the cost of setting up their own pension or provident fund
    • Want to give their employees the option to keep contributing to the fund after they leave
    • Do not want to compel their employees to join the fund
    • Do not want to compel their employees to contribute at a pre-determined rate
  8. What are the tax benefits of a retirement annuity?

    There are three tax benefits:

    1. Contributions are tax deductible: Contributions (in aggregate, across all types of retirement funds) can be claimed for tax up to a maximum of 27.5% of gross remuneration or taxable income (whichever is the larger), subject to an annual cap of R350,000. Employees may claim excess contribution in subsequent years, subject to the annual limit. Unclaimed contributions are added to the tax-free portion of any lump sum at retirement.
    2. Investment returns are not taxed: there is no income tax or capital gains tax on the investment return earned in a RA.
    3. Benefits are taxed on a favourable basis: lump sum benefits are taxed on a sliding scale with a portion of the benefit paid out tax free (see details under “How are retirement annuity benefits taxed?”).
  9. When and how can members access their retirement annuity?

    Members can access their RA as a cash lump (net of withdrawal lump sum tax) before age 55 if they:

    • Formally emigrate
    • Retire early due to ill-health
    • The paid-up RA value is less than R7 000

    Otherwise, they cannot access their RA before age 55.  They can then take a maximum of 1/3rd of their investment as cash (plus any contributions not deducted for tax); with the balance they must purchase a compulsory annuity, which will pay a pension for life.  If the benefit is R247,500 or less at retirement they can elect to receive the full benefit as cash.

  10. How are retirement annuity benefits taxed?

    Lump sum benefits are taxed on the following scale:

    Tax Rate Withdrawal Lump Sum Retirement Lump Sum
    0% R0 to R25,000 R0 to R500,000
    18% R25,000 to R660,000 R500,001 to R700,000
    27% R660,001 to R990,000 R700,001 to R1,050,000
    36% More than R990,000 More than R1,050,000

    Source: South African Revenue Service

    Annuity payments are taxed as income according to the personal income tax tables.

  11. Can employees stop contributing to a Group RA?

    Yes, employees can make their individual RA ‘paid-up’, even if they participate in a Group RA, and even if they have not left their employer.  Making their RA paid-up means they (or the employer) no longer pays monthly contributions; however they will stay invested until they retire (earliest age 55).

    At 10X we do not pay upfront broker commissions. Members therefore do not incur any ‘penalties’ if they make their 10X RA paid-up.  Be aware though that if they make their current non-10X RA paid up, their current service provider may claw back any unrecovered broker commissions (plus accrued interest) from their investment balance. This should not, however, be a factor in their decision to transfer or make their current RA paid up or not, as their service provider will deduct the outstanding broker commissions anyway (either now or in the future).

  12. What happens if an employee participating in the 10X Group RA leaves the employer?

    The employee has the following options:

    • The employee can continue to contribute to the RA on an individual basis, after signing a debit order form
    • The employee can make their RA paid-up and stop making further contributions
    • The employee can transfer their RA to another RA provider
    • If the employee is above the age of 55, they can claim their RA, in which case they will be required to use at least two-thirds to purchase a compulsory annuity (unless the RA value is less than R247,500)
    • They can claim their RA as a cash lump sum if its paid-up value is less than R7,000, or they formally emigrate, or they have retired early due to ill-health (subject to medical proof).
  13. Can employees transfer their retirement annuity?

    Yes, it is possible to transfer an existing RA to the 10X RA, if the rules of the existing RA permit this.  The rules of the 10X RA permit transfers to another RA fund at any time, even if the employee has not left their employer.

  14. Will there be penalties on transferring the retirement annuity?

    There may be a ‘penalty’ from the existing provider if participating employees transfer their retirement annuity (RA) to 10X. These penalties represent a claw back of unrecovered broker commissions and costs. This should not, however, be a factor in the decision to transfer as the existing RA will deduct these commissions and costs anyway, either now when they transfer or in the future, over the remaining life of the RA.  At 10X, we do not pay up-front broker commissions. Employees therefore do not incur any ‘penalties’ if they transfer their 10X Retirement Annuity.

  15. What happens in the event of a participating employee’s death?

    Death benefits are governed by Section 37C of the Pension Funds Act. This section instructs the RA fund’s trustees to distribute all retirement fund assets to the deceased dependants and nominated beneficiaries in the manner they deem fit. It is therefore very important that participating employees keep their dependants and beneficiary nomination forms up to date.

    Your investment will be taxed on the same basis as on retirement. However, from 1 March 2015, contributions that were made to an RA fund that did not receive a tax deduction are included in the estate of the deceased and subject to estate duty.

  16. How do participating employees transfer their previous retirement fund to the 10X Group RA?

    On withdrawing from their current retirement fund (either a company fund, retirement annuity or preservation fund), the participating employee must complete a withdrawal form, indicating that they wish to transfer their investment to the 10X Retirement Annuity Fund. This form must be signed and sent to HR (for a pension or provident fund) or to the fund administrator (for an RA or preservation fund).

    Thereafter, they must request a 10X RA Application Form by e-mailing ra@10X.co.za or contacting 10X on 021 412 1010.The must complete and sign the form and fax (0865 201 934) or e-mail it back to 10X, together with a copy of the withdrawal form. They must be sure to complete the “Transfer Fund Details” section on the application form. 10X will contact the existing fund, action the transfer and confirm when completed.

  17. How does the employer initiate a 10X Group RA?

    Each participating employee must complete an Application Form, as the contract is between the employee and 10X.  The employer must fill in the Employer Registration Form as well as the Authorised Representative Form.  These forms can be e-mailed to ra@10x.co.za or faxed to 0865 201 972.

    The Group RA submission must include:

    • The employer’s certificate of incorporation
    • A copy of the employer’s bank statement (detailing employer’s address, for debit order processing) not older than 3 months
    • A copy of the employer representative’s and authorised representative(s)’ ID
    • Completed and signed application forms for each employee joining the fund