Browse FAQs

Retirement annuity

How does tax work on a Retirement Annuity?

Retirement annuities are tax-efficient investment vehicles, meaning that they come with tax rebates for investors.

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Are retirement annuity contributions tax deductible?

You may deduct up to 27,5% of your gross remuneration or taxable income (whichever is the higher) in respect of your total contributions to a pension, provident or retirement annuity fund, subject to an annual limit of R430 000.

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What is the maximum I can contribute to a retirement annuity?

You can invest up to 27.5% of your taxable income in a 10X retirement annuity, with a maximum tax deduction limit of R430 000 per annum.

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Who should consider using a retirement annuity?

It’s never too early or too late to start saving for your retirement.

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What is the maximum I can contribute towards a retirement annuity?

Retirement Annuity contributions are tax deductible under S11(k) of the income tax act.

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Can a person have more than two retirement annuities?

Investors can take out as many RAs as they choose, with the same or different providers. They can all be accessed at different times. However, the rules relating to the minimum amount requiring annuitisation (R360,000) are applied per fund

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Will I be penalised for a Liberty RA withdrawal?

If you have a Liberty Retirement Annuity (RA), your withdrawal options and any potential penalties are governed by both Liberty's specific terms and South Africa's retirement regulations.

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Can I withdraw my Sanlam RA before age 55?

While your Retirement Annuity (RA) is with Sanlam, the rules governing early access are set by legislation and apply to all RAs in South Africa.

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What factors should I consider when evaluating an investment product?

What factors should I consider when evaluating an investment product?

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Can I get my money back if I cancel my retirement annuity?

While you can't "cancel" an RA to get all your money back, there are specific circumstances under which you can access some of your funds.

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What are the consequences of canceling my retirement annuity?

Many investors ask about "cancelling" their retirement annuity (RA), often during financial pressure or career changes.

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What is the annual growth that can be expected on the10X Retirement Annuity?

The annual growth of your 10X Retirement Annuity (RA) depends on several factors, particularly the fund you choose.

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What happens to my retirement annuity when I resign?

Irrespective whether you belonged to a Group RA scheme or took out the retirement annuity yourself, the retirement annuity is a savings product for individuals, registered in your name.

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What are the consequences of canceling my retirement annuity?

If you cancel the policy before maturity date (normally in the year you turn 55), the policy will be made "paid-up".

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Is it legal to be penalised for reducing my retirement annuity premium?

Good practice no but legal and the industry standard, yes. If your retirement annuity is based on a policy (i.e most life insurance retirement annuities) then you are bound by the policy "terms and conditions".

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