Continue growing the money you have saved so far when you change jobs so that you can continue looking forward to a comfortable retirement. We add an amount, the Wealth Bonus, to your savings as a reward if you remain invested until retirement. The longer you stay invested, the larger the bonus.
View the brochure for more details
Minimum payment
R25 000 one-off payment
R5 000 ad hoc payments
How long you invest for
Minimum retirement age of 55 years.
Freedom to change your choice
You have the freedom to switch between investment funds as your needs change. You can make four switches free of charge per plan year.
Your investment choices
You can choose from a wide range of leading investment funds carefully selected by Sanlam.
With the Lifetime Investment Option, your savings are managed by leading asset managers at very low cost, offering you peace of mind for the duration of the investment.
Benefits
- You receive an amount, called the Wealth Bonus, when you retire or terminate the policy. The longer you invest, the bigger the Wealth Bonus
- Continuity of investment of retirement savings
- Protection against creditors
- Tax efficiency
- Access to your money
How it works
- You choose your retirement age (minimum age 55 years)
- The one-off payment is transferred from your existing pension- or
- We invest the money in the underlying investments that you choose with the help of your Sanlam financial adviser or accredited broker
- Your money can grow over time based on your underlying investments. The longer you remain invested, the higher the Wealth Bonus will be.
When you retire
When you retire, the Wealth Bonus will be added to your retirement savings. You will be allowed to take a portion of your savings as a lump sum. The remainder must be used to purchase an income-generating product (compulsory annuity) such as Investment-linked Living Annuity, our Investment-linked Lifetime Income Plan or a Life Annuity. These aim to provide you with an income for the duration of your retirement.
Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. Read more about the Two-Pot System here. In summary, the retirement savings in your preservation fund are divided into 3 components, and each component gets treated differently at retirement:
- Vested component: Benefits in the vested rights portion* of this component will be available as a lump sum (subject to taxation), as an annuity, or as a combination.
Benefits in the non-vested rights portion* are subject to the purchase of a compulsory annuity (to provide you with an income during retirement) with at least two-thirds of the value.
*Only if you were previously a member of a , you might have both a vested and non-vested rights portion inside your .
- Retirement component: All benefits must be used to purchase a compulsory annuity to provide you with an income during retirement.
- Savings component: You can take the full amount as a lump sum, or use it to purchase a compulsory annuity.
If the full value of the + two-thirds of the non-vested rights portion in the is equal to or less than R165 000, the full value of the and the non-vested rights portion of the may be taken as a taxable cash lump sum.
Read more about the Two-Pot System here.
When you die
Trustees will take into account your wishes and all your dependants’ needs when you die to decide who receives this benefit.
Early retirement
If you are permanently disabled before you retire, your benefit is paid out to you in the same way as if you had reached retirement (aged 55).
Access to your money before retirement
- Vested component:
You are allowed to make one withdrawal before retirement. Access is also possible in the case of emigration (three years cessation of tax residency), disability or death. - Retirement component: No access at all, except in the case of emigration (three years cessation of tax residency), disability or death, subject to the applicable fund rules.
- Savings component: You can make one withdrawal per tax year, subject to taxation in terms of the individual income tax table.
Read more about access to your retirement savings here.
Tax
- Tax benefits
- At retirement there is no tax on the amount transferred to a post-retirement product that provides you with an income during your retirement
- You don’t pay tax on any interest or dividends
- No capital gains tax is applicable
- What is taxable?
- There is tax on any portion of your retirement savings that you withdraw in cash at retirement.
- There is tax on any withdrawal benefit before retirement.
Fees
Fees vary per product and your underlying investment. Please speak to your financial planner to make sure you understand which fees you pay and why.
Why get financial advice
It is important to bear in mind that any investment has some risk. We therefore recommend that you consult your Sanlam financial adviser or accredited broker who can help you find the most appropriate products for your needs and circumstances.
Sanlam Reality members on the Reality Plus, Reality Health and Reality Core membership options now qualify for a discount of up to 100% on the primary asset management fee of Sanlam Investments’ flagship funds as well as Sanlam Life’s savings products. The discount percentage is related to your tier status. Speak to an adviser about Sanlam’s investments and savings products, the asset management fees and the discount amounts you might qualify for. You can also visit the Sanlam Reality webpage to find out more about the benefits you can receive.
