10 Benefits of a Retirement Annuity

27four is a leading provider of retirement fund solutions which are easily accessible through the various fund platforms or directly through 27four. You can speak to your financial advisor or contact one of our in-house wealth management experts to assist you in designing and implementing your personalised financial roadmap. Here we look at 10 quick benefits of setting up your own retirement portfolio.

 

  1. Access to financial markets: One can select from a variety of investment funds that are managed by leading fund managers.
  2. Tax efficiency: Investor’s investment contributions are tax deductible within certain limits. This translates to money you would have paid to SARS can now grow in your retirement annuity. Investment proceeds also do not attract any tax, making your money grow even faster than in most other investment vehicles.
  3. Contributions: The investor makes regular contributions and can add lump-sum contributions at the start of the investment or any time during the investment term.
  4. Guarded investment: The investor’s money is protected against the claims from creditors. Nobody other than the investor or their dependents can touch it.
  5. Estate duty exemption: In the unfortunate event of premature death, more money can go to the dependents.
  6. Cash lump sum: The investor can take up to one-third as a cash lump sum at retirement. A portion of the full lump sum may be tax free.
  7. Regular income: When the investor retires from their retirement annuity, they must, according to regulation use at least two-thirds of the proceeds to buy a compulsory annuity. This will provide them with a regular income entering retirement.
  8. Entry age: Minimum 1 year, maximum 69 years old.
  9. Retirement age: Any time after age 55.
  10. Initial savings term: Up to age 70 years, after which investors can choose to continue their investment in 3-year cycles.

 

Speak to your financial advisor or contact us directly to get started today.