Group Retirement Annuity
What is a Group Retirement Annuity (RA)?
A Group RA is the same as an individual RA (see below), except that the employer facilitates the payment of contributions to the selected RA administrator through the company’s payroll system. The employer can either deduct these contributions off the employee’s remuneration, or make the payment on their behalf, as a fringe benefit. However, each employee contracts individually with the RA administrator, as is the case with a traditional RA, and their savings are not pooled in one company fund. 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.
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
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 costs 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
The 10X RA low-fee advantage
High costs are a problem with the standard industry Group RA, especially those issued by traditional life insurance companies. Investors may pay initial fees, recurring broker commissions and high investment management fees. Further, members may be penalised if they leave their employer and cannot continue to contribute, or if they wish to lower their contribution.
You can avoid these pitfalls with the 10X Group RA. 10X offers a low cost RA that can be purchased directly or through a 10X approved financial advisor. Our fees are typically well below half the industry average, and members pay no initial fee or administration fee. They also pay no termination fees or penalties if they transfer their 10X RA or make it paid-up.
For more information on how 10X Investments can enable your employees to have more money at retirement, please call 021 412 1010 or email firstname.lastname@example.org. Learn more about the 10X Solution.