Encourage your RA clients to add a lump sum to their RA before the end of the tax year to reduce tax.
It helps to secure a comfortable retirement
- It gives your retirement savings plan a kickstart.
If you invest in an RA as well as your employer retirement fund, you create a larger pot of retirement savings to secure a better income during retirement. - It provides an opportunity for capital growth.
An RA offers you the opportunity to invest in a wide range of funds, risk-profiled solutions and s. You select the underlying investments in accordance with the amount of investment risk you’re willing to take on. - It’s affordable.
A small monthly investment can make a big difference in your retirement savings outcome years from now. - Your savings are protected from creditors.
If you are in the process of insolvency, your retirement annuity investment is protected from creditors – they won’t be able to take from your savings. - An RA encourages disciplined savings for your retirement.
You can’t touch the investment until you are at least 55 years old. - At retirement, you can seamlessly transfer your savings to one of our retirement income solutions, without exiting the markets.
It reduces tax
- Contributions to retirement funds are tax deductible, up to the lesser of:
- R350 000 or
- 27.5% of the higher of your
- remuneration as defined in the 4th Schedule, or
- taxable income including taxable capital gains before any deductions under Section 11F itself and 18A, or
- Your taxable income before the Section 11F and 18A deductions and also before inclusion of taxable capital gains.
- Excess contributions that did not rank for deduction, may be carried forward to the following tax year, subject to limitations.
- Earnings inside a retirement fund are protected from taxes, including capital gains.
