How does a 10X RA compare with a Discovery retirement annuity

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1. Simplicity: 10X offers just one RA, with one optimal portfolio, one investment style, one investment strategy, one fee scale. Your pay-out is the value of savings, plus the net investment return thereon.

The Discovery retirement annuity allows you to choose between the Core and the Classic Retirement Plan. Both these products have in-built insurance features. The Core plan offers an administration fee recovery feature after 10 years (and every five years thereafter) as well as risk benefits if you meet certain conditions (a Contribution Waiver for disability and a Life Booster on your pay-out should you die – the size of the boost depends on your Vitality status).   The Classic Plan includes a series of performance protectors, guarantees and enhancers, all subject to specific conditions.  

 2. Solution-based: The 10X RA offers just one optimal portfolio, whereas Discovery offers you choice: different plans, different structures, different features and a choice of 11 different funds.

 3. Index funds. 10X relies exclusively on index funds, whereas the Discovery funds are actively manged.

 4. Fees. The 10X RA charges just one investment management fee, at a maximum of 1,04% pa. The fee drops to 0,8% pa on amounts above R1m and to 0,57% pa on amounts above R5m.


The 10X RA does not charge administration, initial, exit or performance fees. You can negotiate a maximum advisor fee up to 1,14% pa. 10X does not permit initial fees.

With the Discovery retirement annuity plans, you may incur the following initial fees:

Initial fees to Discovery Invest: Discovery Invest does not charge initial fees on lump sum contributions. For recurring contributions, there are two types of structures for you to choose from. On Structure 1 an initial fee is deducted from each contribution. This fee is up to 2.32% plus VAT of each contribution. On Structure 2 no initial fee is deducted. Your choice of Structure 1 or Structure 2 affects the annual fees paid to Discovery Invest.

Initial fee to your financial advisor: This can be levied both on lump sum and regular contributions and is negotiable. The maximum initial fee for a lump sum investment is 3% plus VAT. On Structure 1, you may be charged an initial fee of up to 5% plus VAT of your recurring investment. On Structure 2, there are no additional fees as these are already included in your annual fee to Discovery.

Initial fee to your fund manager: Some fund managers charge an initial fee for investing in their funds. The initial fees applicable to each fund can be found on the respective fund factsheets.

With the Discovery RA, you may incur the following annual fees:

Annual fee to Discovery Invest:  You pay an annual administering fee as a percentage of your investment, at a maximum of 0,75% of your investment plan. This tiers down progressively, to 0,3% pa on amounts above R1m. The Classic Retirement Plan includes features to protect your investment growth, at a cost of 1,2% pa.

For recurring investments under Structure 2, Discovery Invest deducts a fee of 3.5% plus VAT pa. Part of this fee pays your financial advisor an upfront fee at the start of your investment as well as ongoing additional payments.

Annual fee to your financial advisor: the maximum fee on lump sum investment or recurring investment under Structure 1 is 1.5% plus VAT. No annual fee is charged by your financial advisor under Structure 2

Annual fee to the fund manager: You pay an annual fee for investing in their funds. The fees range from 0.50% for a money market-type fund to 3% for an aggressive equity fund. The annual fee can be obtained from the relevant fund factsheet.

With the Discovery RA, you may incur the following transaction fees:

Switch fees: Discovery Invest allows you four free switches between funds per year. After that, a fee of 0.25% plus VAT of the amount switched is charged (up to a maximum of R500).

Early exit fee: For recurring contribution retirement plans under Structure 2, the early exit fee starts at 15% of the fund value, decreasing to 0% over half the term of the policy. The minimum term over which there will be a penalty is five years, and the maximum term is 10 years. This fee will become payable if you reduce or stop your contributions before the end of the investment term or if you transfer out of your Discovery Retirement Plan.

5. Direct. You can acquire the 10X RA directly online, without the help of an advisor. You cannot purchase the Discovery retirement annuity online, you need to use an advisor.  

6. New-generation RA: 10X offers the flexible new-generation (unitised) RA whereas the Discovery retirement annuity is policy-based.

 7. Low lump sum contributions: the minimum lump sum contribution with the 10X RA is R25,000, with the Discovery retirement annuity plans it is R60,000.  


Source: 10X Investments; Discovery Invest Retirement Annuity Plans Brochure. Information sourced on 28 June 2017.

Disclaimer: We are not affiliated, associated, authorised, endorsed by, or in any way connected with Discovery or any of its subsidiaries or its affiliates. The official Discovery website can be found at The use in this website and/or in related promotional print or video material of trademarked names and images is strictly for editorial and descriptive purposes, and no commercial claim to their use, or suggestion of sponsorship or endorsement, is made by 10X Investments. Any product names, logos, brands, and other trademark or images featured or referred to within this website are the property of their respective trademark holders. These trademark holders are not affiliated with 10X Investments, our products, services or our websites.

Whilst all efforts are made to provide you with the most accurate details, 10X Investments bears no responsibility for the correctness and accuracy of the content sourced above.
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.

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