It's time for a change of pace. This means you might need to refresh your financial plan to ensure you get the most out of the next chapter of your life. We know you've worked hard for your money, so we want to help make your money work for you.
Solutions suitable for this life moment
Gap cover is a small price to pay for peace of mind
Gap cover is a short-term insurance policy that covers the difference between what specialists charge in hospital and what medical aid schemes actually pay out. Most medical schemes will cover in-hospital expenses at the medical scheme rate. However, most specialists today are charging rates that are substantially higher and it is you who will be liable for the gap. In addition, schemes often require a co-payment for procedures performed in hospital and they impose limits on certain procedures.
Absa Gap Cover offers gap, co-payment and sub-limitation cover for you and your dependants registered on your medical scheme.
- The gap is the amount that a medical practitioner charges above the medical scheme tariff, subject to a maximum of five times the medical scheme tariff
- You will receive a benefit equivalent to the gap for any hospital admission as an in-patient
- The gap for chemotherapy or radiotherapy for the treatment of cancer on an out-patient basis, or kidney dialysis on an out-patient basis, is also covered
- The gap for surgical procedures that are traditionally performed in-hospital but are performed in a doctor's rooms will also be covered, e.g. certain scopes
- Benefits exclude ward fees, theatre fees, medicines, materials and other hospital expenses
- You will be covered for a co-payment or deductible you have to pay for hospital admissions and for chemotherapy or radiotherapy for the treatment of cancer on an out-patient basis; as well as for kidney dialysis on an out-patient basis
- A co-payment or deductible for major medical outpatient treatment is also covered, limited to specialised diagnostic radiology (MRI and CT scans)
- We also cover charges above any sub-limitation imposed by the medical scheme for hospital admissions
- The sub-limitation imposed by the medical scheme for biological cancer drugs is covered, limited to Herceptin, Mylotarg, Nexavar, Gleevec, Sprycel, Faslodex, Velcade, Tarceva, Alimta, Zevalin, Avastin, Erbitux, Sutent, Fludara, Mabthera with specific oncological condition and/or specific subgroups
A living annuity giving you the flexibility you deserve
A living annuity is a flexible way to invest your retirement funds and get the freedom to adjust your retirement income.
Absa Living Annuity
At retirement, the Living Annuity, which is underwritten by Absa Life, provides members of a pension, provident or retirement annuity fund with a flexible investment vehicle from which they can receive a regular and adjustable retirement income.
The Absa Living Annuity is suited to individuals who:
- Retire and receive proceeds from a retirement fund
- Seek to receive a regular income from a flexible retirement investment vehicle
- Wish to have control of the underlying investment choices
The salient features of the Absa Living Annuity are:
- Flexibility in terms of portfolio adjustments and income requirements
- Transparency of fees, investment terms and underlying investment holdings
- The freedom to build a diversified portfolio from a comprehensive range of funds
- Regular reporting on portfolio holdings, investment values and transactions
- No penalties for aspects such as investment term
The current withdrawal rate of the annuity, as set out by SARS, ranges between 2,5% and 17,5% of the total capital value of your annuity per annum.
The value of the annuity is initially determined by the capital investment and thereafter annually by the market value of the underlying investment options, which are normally subject to price fluctuations. The lower the withdrawal rate you select, the higher the growth potential of your portfolio.
You may only review and adjust the income level on the investment anniversary date, within the parameters set by SARS.
The annuity fund may never be exhausted during your lifetime and, we review it annually. If, in our opinion, the level of income is such that there is a danger that the underlying capital may be depleted before your death, we may reduce the level of income in order to ensure that you receive a continued income into the foreseeable future.
The annuity payment you receive is fully taxable as income. PAYE is deducted at source in accordance with the SARS tax tables. Should you require a lower percentage of tax to be deducted, you would have to obtain a tax directive from SARS annually.
Under current legislation, any income or capital growth in respect of the underlying assets of the Living Annuity in the hands of Absa Life is exempt from any tax.
In case of your death, the following death benefits options are available to the beneficiaries:
- Nominated beneficiaries can receive annuity payments for their lifetime or at least for as long as the capital lasts
- An accelerated annuity payment can be made to the nominated beneficiaries over a period of five years
- The funds may be commuted to a lump sum and paid to the beneficiaries less any income tax
- The value of the annuity may be paid to the beneficiaries as an annuity and a lump sum
If there are no beneficiaries on record with AIMS at the time of your death, the balance of the annuity may be commuted to a lump sum, and paid to your estate, less any income tax.
Get the best advice from a trusted financial adviser
From help with rebalancing your portfolio and tax advice to conducting a financial needs analysis or assistance with future planning, our financial services experts will ensure you get the advice that you need.
When it comes to your livelihood and assets, it is much safer to ask a professional for advice rather than navigate the market on your own. Since our financial advisers have their finger on market fluctuations, they are in the best position to explain complicated jargon and make sense of confusing standpoints to help you with your financial decisions.
- Undergo mandatory FAIS compliance
- Complete extensive initial training
- Engage in periodic refresher courses
- Have access to extensive in-house resources including specialist advice on legal and tax issues
- Have access to in-house research and advanced financial needs analysis and planning software
Choosing a suitable financial adviser
Know your rights when choosing a suitable financial adviser.
- Analyse your needs, taking into account your age (life stage), income, dependents, goals and the moments that you are going through
- Protect your best interests
- Complete the Contact Stage Disclosures, (which means they must clarify which services they are qualified to provide, confirm their relationship with Absa Group Limited and define the service they are able to provide to you based on your specific needs)
- Give you the information you need to make informed decisions
- Disclose commission and administration charges upfront
- Make sure you understand all the terms and conditions of your investment
- Provide you with all the documents within 30 working days
- We appoint only the best people to serve you, we give them superior business tools and we train them continually to develop their skills
- We will establish a strong relationship with you in order to understand your unique needs
- We will give you high-quality financial advice
- We use quality financial planning tools to make recommendations and will continually monitor the progress of your financial plan
- We can meet all your banking, insurance and investment needs
- You can choose just how we engage with you — be it face-to-face or telephonically
Turn your Absa card into a cash generating tool
Absa Rewards is an innovative programme that rewards you for banking with Absa. It does so by literally putting cash in your pocket. It also gives you access to savings, discounts, special member benefits and great offers.
Absa Rewards tier formula
Simply use an Absa debit, cheque or credit card to pay for your purchases and you will earn cashback on the first R200 000 worth of qualifying purchases** during an accrual period (accrual period is from the 16th of a month to the 15th of the following month).
The percentage of cashback you can earn is determined by your Rewards Tier. Your Rewards Tier is calculated based on the number of products you hold in each category of qualifying products, together with your transactional account. Please note that multiple products of the same type (for example, having two savings accounts) will only count once towards your Rewards Tier.
Earn 0,25% if you have one transactional account, for example a cheque account only
Earn 0,5% if you have one transactional account and any two qualifying accounts, for example a credit card, together with a personal loan and vehicle finance
Earn 1% if you have one transactional account and any three or more qualifying accounts, for exampl, a cheque account, together with a credit card, home loan and vehicle finance