What is a Living Annuity?

A Living annuity is a financial product that pays you a regular income. You can choose between two types of annuities: a Guaranteed Annuity or a Living Annuity. As member of a pension, pension preservation or RA fund, you must use at least two-thirds of your fund proceeds AT RETIREMENT to purchase an annuity, once your fund value is more than R247 500. You are not permitted to buy a fixed-term annuity that only pays out for a specific number of years.As member of a pension, pension preservation or RA fund, you must us...

Why should I invest with an index fund instead of an active fund manager?

Index funds deliver better long-term returns than actively managed funds. In fact, statistics show that only 1 in 5 actively managed funds ever manage to beat the index.

How long does it take for the fund to pay out the withdrawal benefit?

Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 10 business days for 10x to pay out the funds. If it takes longer, you should follow up with our administrator to see what is holding up the process (or request your previous HR department to follow up on your behalf).

What is a unit trust?

A unit trust refers to an investment portfolio that is managed as a Collective Investment Scheme and divided into equal parts or ‘units’. Unit trust investors therefore buy units of the portfolio, with each unit representing a proportionate share of all the assets underlying the portfolio. The unit trust price reflects the current market value of the underlying assets, divided by the number of units in issue. The unit trust vehicle is appropriate for if you want to invest discretionary (non-retirement) savings...

What is a preservation fund?

A preservation fund is a retirement fund in terms of the Pension Funds Act. It is a tax effective investment vehicle designed for individuals who wish to invest the proceeds of their company-sponsored retirement plan in a tax-efficient manner.You may transfer the proceeds of your pension or provident fund to a preservation fund in the event you are dismissed, retrenched, or you resign. Doing so preserves both your accumulated savings and the attached tax benefits. You can invest the proceeds from different pension or...

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