Retirement Annuities

A unique retirement savings product.

It allows you to invest in unit trusts.

Ideal for the self-employed.
Ideal for an employee to boost his or her retirement savings.

You get tax benefits and protection, but it comes with restrictions.
Your contributions are tax-deductible, subject to limits.
The capital growth, interest and dividends earned are tax-free.

Your contributions are allocated as follows:
One-third to the savings component; and
Two-thirds to the retirement component of your account.
(The two-pot retirement system)

You may nominate beneficiaries.
No estate duty payable.

Safeguards ensure you keep your investment for retirement.

Protected from potential creditors:
1. You cannot transfer or pledge your RA and,
2. You cannot use your RA to secure a loan.

Protected from yourself:

Before retirement:
You may access the savings component only.
Limited to one withdrawal per tax year.
You may not withdraw from your retirement component.
It must be preserved until retirement.

At retirement (the earliest age 55):
Savings component.
You may take the balance in cash.
Or use it to purchase a retirement income product.

Retirement component.
You must use the full value to purchase a retirement income product. Such as a living annuity or a guaranteed life annuity.

Vested component.
Consists of your accumulated RA investments up until 31 August 2024. Plus, growth.
You cannot make additional contributions to your vested component.
Your previous rights continue to apply to your vested component.
Your vested component is not impacted by two-pot.
You may take one-third maximum in cash.
The balance must be used to purchase a retirement income product. Such as a living annuity or a guaranteed life annuity.

You may access your RA before 55 if:
You are permanently disabled
You emigrate

Indeed, a unique retirement savings product.