Retirement Annuity FAQ

What is a retirement annuity?

A retirement annuity (RA) is a retirement fund in terms of the Pension Funds Act. It is a tax effective investment vehicle designed for individual investors (as opposed to employees who contribute to a workplace retirement fund). A retirement annuity is ideal for people who- are self-employed;- don’t have access to a work-place pension or provident fund through their employer;- want to supplement their pension or provident fund savings- earn significant amounts of non-pensionable income (eg interest and rental in...

What happens if I cease my retirement annuity contributions?

I have a retirement and life and am retrenched so I would like to know what will happen if I can't pay them any more?

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, t...

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, th...

Am I taxed for my portion of my ex-husband’s retirement fund?

In my divorce settlement I received 50% of my ex-husband's annuity gratification amount. He is now 64 and it pays out in a week. He is going to pay my share and the tax, if any, will already have been...

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