FAQ

What does the advent of the EAC mean for 10X?

The advent of Effective Annual Cost (EAC) is superfluous for clients when examining the 10X offering.EAC was introduced by ASISA so that customers have one standard with which to measure and compare the total cost of owning and accessing an investment like a retirement annuity, including investment management, administration, advice, penalties for early termination, cost of loyalty bonuses and guarantees.10X was set up to provide a simple retirement solution with one all-in fee for the client. In addition to the trans...

What is tax rebate on a retirement annuity?

Unlike your medical aid contributions, your RA contributions qualify for a tax deduction or a tax refund rather than a tax rebate. Although you are free to contribute as much as you want to your RA, the retirement annuity tax relief for the 2017 tax year is set a maximum rate of 27,5% of income, subject to a rand cap of R350,000. This R350,000 rand cap (and the 27,5% limit) however includes the contributions made to a workplace pension or provident fund. If you contribute over the limit: SARS keeps a record of all unc...

What is non-pensionable income?

Non-pensionable income is that part of your income which does not attract a compulsory contribution to your employer’s pension or provident fund.If you do not belong to a workplace retirement fund, then all your income would be non-pensionable. Alternatively, if only your basic salary is pensionable, other remuneration such as commissions, bonuses and overtime would be considered non-pensionable. The earnings of self-employed people, as well as taxable rental and interest income are also non-pensionable. The concept o...

Get started or switch to 10X today.