Retirement income
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The Retirement Income Plans, or Livinig Annuities have been designed to give you a flexible income solution when you retire. Choose from three Retirement Income Plans, each designed to meet your retirement income and estate planning needs:
• Fixed Retirement Income Plan: provides you with a guaranteed income throughout your retirement years as long as you are alive. This is also known as Traditional Life Annuity. • Linked Retirement Income Plan: provides you with the flexibility to choose how to invest your money as well as the convenience of how much to withdraw each year. This is also known as Living Annuity. • Guaranteed Escalator Annuity (unique to Discovery Invest): offers you the benefits of both the fixed and the linked annuity. The innovative Guaranteed Escalator Annuity provides you with a guaranteed minimum income that ensures you can receive an income in retirement for your whole life, even if your retirement savings run out. The investment will be invested in your choice of Annuity Escalator Funds allowing you to benefit from good investment performance. |
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What are the benefits of investing in a retirement income plan?
Tax efficiency |
All your investment growth, including interest, dividends and capital gains within a retirement income account is tax free. Your retirement income is taxed according to the prevailing personal income tax table, assuming that this is your only income.
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Investment choicePrudential regulation |
For Linked Retirement Income Plan and Guaranteed Escalator Annuity, you have access to a range of unit trusts designed to enable you to select one or more underlying unit trust funds to suit your risk profile.
All investment portfolios you select are compliant with Regulation 28 of the Pension Funds Act, to ensure your money is invested prudently across a number of asset classes.
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Discipline, flexibility and freedom |
For Linked Retirement Income Plans, you have flexibility in that you may switch between the unit trusts at any time. You may, at any time, transfer your investment to any other approved linked retirement income provider, without cost or penalty.
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Transparent fees and regular reporting |
All fees are fully disclosed and we will keep you regularly informed on all aspects of your investment. You may also access your investment information online.
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Transfer of wealth |
You may nominate a beneficiary on your Linked Retirement Income Plan and Guaranteed Escalator Annuity. In the event of your death, the money in your retirement income account is paid out to your beneficiary, and you do not incur any estate duty (a form of tax).
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Who should consider investing in a retirement income plan?
You can purchase our retirement income plan at retirement with the pension benefits originating from your pension, provident, preservation or retirement annuity fund, subject to the rules of the originating fund.
You can purchase our retirement income plan with the funds allocated to you when a retirement fund member dies, subject to the rules of the originating fund.
You can purchase our retirement income plan with the funds allocated to you when a retirement fund member dies, subject to the rules of the originating fund.
What are the minimum investments?
The minimum once-off lump sum investment is R100,000.
What are our fees?
For Fixed retirement income plans, our once-off fee is up to 3.00% plus VAT.
For Linked retirement income plans and Guaranteed Escalator Annuity:
Our initial advice fee is from 0.00% to 1.50% plus VAT.
Our annual advice fee is from 0.50% to 1.00% plus VAT, deducted monthly from your retirement annuity account.
For clients with investment portfolio greater than R3 million, our fees are negotiable on a sliding scale.
For Linked retirement income plans and Guaranteed Escalator Annuity:
Our initial advice fee is from 0.00% to 1.50% plus VAT.
Our annual advice fee is from 0.50% to 1.00% plus VAT, deducted monthly from your retirement annuity account.
For clients with investment portfolio greater than R3 million, our fees are negotiable on a sliding scale.
Our product providers
Allan Gray, Discovery, Glacier, Liberty, Momentum, Old Mutual, Sanlam, Stanlib
Our Preferred providers
Allan Gray |
We select Allan Gray as our preferred provider for the following reasons:
1. Reputable asset management company; 2. Financially sound; 3. Efficient administration platform; 4. Clever use of technology delivers excellent user interface; 5. Excellent staff delivers excellent client service; 6. Low platform administration cost; 7. Select range of good performing unit trusts; 8. Easily creates customisable, informative investment overview; 9. Enables clients to submit instructions online. More info: What are Living Annuities? (A video) |
Discovery Invest |
1. Reputable financial services group; 2. Financially sound; 3. Easily creates detailed investment proposal; 4. A wide range of internal and external funds; 5. Clever use of technology to provide excellent client service; 6. Costs are competitive; 7. LifeBooster boosts investment value of Linked Retirement Income Plan by 5% to 15% depending on Vitality status when life assured dies; (For retirement annuity linked to a Discovery Life policy) - 8. , uses unneeded risk cover (from Discovery
Life Plan) to provide additional tax-free income for life; 9. Boosts retirementincome to reduce the risk of exhausting retirement savings in the event of a serious illness or disability. More info: Discovery Retirement Income Plan Brochure |