When you invest your money through a retirement annuity, you can expose it to growth assets like shares. These assets are essential to produce inflation-beating investment returns.

By giving your money time to grow you benefit from the power of compound growth.

A retirement annuity also enjoys significant tax concessions from government, helping you to get more from your investment.

The benefits you get:

  • Contributions – you make regular contributions and can add lump-sum contributions at the start of your investment or any time during the term.
  • Tax efficiency – your investment contributions are tax deductible within limits, which means money you would have paid to SARS can now grow in your retirement annuity. Investment returns also do not attract any tax, making your money grow faster than in most other investment vehicles.
  • Access to financial markets – you can select from a range of investment funds that are managed by leading South African fund managers.
  • Protected investment – your money is protected against the claims of creditors. Nobody other than you or your dependants can touch it.
  • Estate duty exemption – in the event of your premature death, more money goes to your dependants.
  • Cash lump sum – you can take up to one-third as a cash lump sum at retirement. A portion of or the full lump sum may be tax free.
  • Regular income – when you retire from your retirement annuity, you must use at least two-thirds of the proceeds to buy a compulsory annuity. This will provide you with a regular income in retirement.