Retirement
Products

Tax benefits:

Contributions to an RA are tax-deductible up to certain limits. This means that you can reduce your taxable income by contributing to an RA, which can result in significant tax savings. There is also no Dividend Withholding Tax (DWT) or Capital Gains Tax (CGT) within the RA, so switches do not trigger CGT.

Long-term growth:

RAs are designed to provide long-term growth, which means that your retirement savings can grow significantly over time. This growth can be achieved through a variety of investment options, including equities, property, bonds, and cash.

Protection against creditors:

RAs are protected against creditors in South Africa. This means that if you experience financial difficulties, your retirement savings will be safe.

Limited access to funds:

Retirement annuities are designed to be long-term investments, and there are some restrictions on the access to capital before retirement age. This means that you may not be able to access all of your funds in the case of an emergency or other unforeseen circumstances.

Fees:

Retirement annuities can have high fees, which can eat into your returns over time. It’s important to carefully review the fees associated with any RA before investing.

Market risk:

RAs are investments, and as such, they are subject to market risk. This means that the value of your retirement savings can fluctuate based on economic and market conditions.