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Retirement Annuity
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Retirement Annuity
Tax-effective way to save towards your retirement.
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Retirement Annuity benefits

Adapts to your today

Adapts to your today

Adjust your portfolio and contributions anytime.

Retirement benefits

Retirement benefits

Get a cash lump sum with a portion tax-free when you retire.

Disability benefits

Disability benefits

Get a payout if you’re disabled before 55, giving you financial support when you need it most.

Death benefits

Death benefits

Payout to dependents and beneficiaries if you pass away.

 

What you need to know

What is it?

Fees and charges

Tax implications

How to apply

  • What is it?

    The Retirement Annuity offers the added benefit of tax-free transfers from an approved pension, provident, preservation or other retirement annuity fund.
     

    What do you get?

    • With guidance from an adviser, you can customise your portfolio to suit your current and future lifestyle goals.
       

    Terms and conditions apply.*

     

  • Fees and charges

    Minimum monthly debit: 

    • R500 per month

    Minimum lump sum investment: 

    • R25 000

    Annual policy charges:

    • First: R250 000 – 0.75%, 
    • Next: R250 000 – 0.50%, 
    • Above: R750 000 – 0.25%

    Transfers from retirement annuity funds:

    • 0.00%
       

    Note: In terms of the Financial Services Laws General Amendment Act, 2008, no initial fees are payable on Section 14 transfers between Retirement Annuity Funds. Annual fees are calculated on the market value of the units held in the fund. Initial and annual financial adviser initial and annual review fees are negotiable between, the investor, and the financial adviser. 

  • Tax implications

    • Contributions are tax-deductible up to 27.5% of gross remuneration or taxable income (whichever is the higher). This applies to your total contributions to a retirement annuity fund and is subject to an annual cap of R350 000
    • Withdrawals prior to retirement from the Savings component are subject to an individual’s marginal tax rates (PAYE).
    • Get up to one third of retirement proceeds as a lumpsum, with a portion being tax-free
    • The portion of the investment used to purchase a compulsory annuity paying product [MM1] will only be taxed on income payments.
    • Please consult a professional tax adviser to advise you on the tax implications.

  • How to apply

    To start investing, all you need to do is:

     

    1. Download and complete the forms below
    2. Email the forms to clientservices.glacier@absa.africa
    3. We'll get back to you as soon as possible

     

    Forms:

    One Investment form for Individuals

    One Investment form for Legal Entities


     

    Need something else?

    We have investments to suit your budget and goals. Visit the resources page for more.

Explore your options

Preservation Funds

A product that helps to protect and grow your retirement savings when you change jobs.
Investment options
Local/Offshore
Access to funds
Retirement
Contributions
Fund Transfer
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Need more help?

Let one of our consultants help you get the best investments for your needs.

Contact us:

Call us on : 0860 222 150

Email us at : clientservices.glacier@absa.africa