Products I offer

Retirement Annuities are a great way to save for retirement in a tax-efficient manner. The Retirement Annuity can help you supplement your future capital and income at retirement whilst reducing your taxable income today. The investments in a retirement annuity do not attract any tax and the growth is thus more than what it would be in a normal savings plan. You won’t be able to access these funds until you reach the age of 55, and when you want to retire you will then be obligated to transfer at least two-thirds to a living annuity or fixed annuity for income purposes, (unless it’s under a certain amount, currently R247000). Other restrictions also apply to the underlying investments – called Regulation 28 – and I will need to assist you in choosing the correct funds to adhere to these rules and achieve maximum growth. Retirement Annuities are a must for individuals who do not receive a pension or provident fund from their employers, or if you happen to receive additional income (such as rental on a property) and want to reduce your taxable income.

Preservation Funds were introduced to the industry to allow members of occupational funds (pension and provident funds) to “preserve” their benefits in another type of retirement vehicle until they reach their age of retirement in the event of retrenchment, resignation or dismissal. The two main benefits of using a preservation fund are the deferral of taxation and the conservation of one’s retirement benefits, with the option to make one withdraw prior to retirement. The investment funds contained in the preservation fund are not taxed. Withdrawal of one’s benefits before retirement should be carefully considered as pre-retirement taxation rules would apply. I recommend the assistance of a financial planner, when attempting to withdraw from a preservation fund. This is of utmost importance in order to ensure optimal utilisation of tax free allowances. Once you reach retirement age an amount of R500 000 plus contributions not previously allowed are tax free. Before retirement only R25 000 of your lump sum is tax free. These tax free portions are only applicable once in your life time.

This retirement product allows for a tax-neutral transfer from any approved pension, provident and preservation fund or retirement annuity and requires that the investor withdraw a monthly income between 2,5% and 17,5% per year. Living Annuities can be invested as aggressively or as conservatively as the investor chooses, as long as income requirements have been weighed carefully against potential risks. In other words, no regulations are imposed, such as the case with Retirement Annuities and Preservation funds. The benefit of a living annuity over a guaranteed pension is as the name implies, it “lives on” for the investor’s nominated beneficiaries to either draw an income from or can be taken as a cash lump sum, keeping in mind that it would form part of their taxable income. It is also worth mentioning that Living Annuities are exempt from estate duty. Keep in mind that if your beneficiary decides to opt for a cash lump sum, if you pass away, the proceeds will be taxable, as though you retired in your name. 

A major part of what I do is helping my clients decide where to invest their retirement money, but what about the other money? This is what we refer to as “discretionary” investments and could be used for anything from children’s education -to- holidays – to – supplementing retirement funds. This investment will be made with after-tax money and remains fully liquid so that the funds may be redeemed whenever the need arises. Complete discretion can be used, in other words, it can be a “low risk with low expected return” with a more short term nature, such as the purchase of a house over the next year. Or it can be invested more aggressively for the long term, such as for a child’s future use. Discretionary investments can be either local or offshore, within the appropriate limits.

A Guaranteed Annuity provides a fixed income for life. It can be taken on just one life or it can include the spouse of the member as well. A guarantee can be applied, so that the beneficiaries of the member can receive the income or lump sum left, if the member or both the member and his spouse should pass away during the guarantee period. It can be structured in such a way that the income is increased by inflation or a fixed rate per year. This product is suited for risk adverse clients. 

We consult with companies to find the best possible Employee Benefits solution for them. Our investment management of the Retirement Scheme is hands on and is reviewed quarterly with the trustees in order to provide the best possible outcomes for their employees.