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Classic Retirement Annuity

The Classic Retirement Annuity is a savings mechanism that can be used by all investors, including company employees, professionals, small business owners and unemployed individuals.

Lump sum or regular monthly sums may be invested.

Minimum lump sum investment amount: R 25 000
Minimum recurring amount: R 500 p.m and R6000 p.a

The Classic Retirement Annuity is ideal for:

  • Investors who want to save now to supplement their income at retirement
  • Self-employed individuals who do not qualify for membership of a pension or provident fund
  • Any investor wanting to accumulate retirement capital, while making use of all the tax and other benefits applicable to retirement annuity funds
  • Investors who have been employed without entitlement to pension benefits for long periods
  • Employees who want to benefit from the tax efficiency of retirement annuities by using their non-retirement funding to purchase an additional retirement investment. The maximum deduction allowed per taxpayer is the greatest of:
    • 15% of the taxpayer’s income (including investment income, annuities and pension receipts excluding taxable capital gains),
      but excluding income from retirement funding employment, and after deducting other admissible deductions
    • R3 500 less pension fund contributions
    • R1 750

You can now retire at any age from 55 onwards with no maximum, or prior to 55 should you become disabled or emigrate.

On retirement you have:

  • The option to take up to a 1/3 cash lump sum, or
  • The option of investing the full amount or balance in a linked life annuity or compulsory purchase annuity
    to provide you with an income for life.

No initial fees are charged on the annuity component when transferring to the Classic Linked Life Annuity from the Classic Retirement Annuity at retirement.

Your investment’s capital growth influences the income you will earn during your retirement.  If you reduce your retirement capital by making a withdrawal prior to retirement, it may impact on your retirement proceeds and your ability to provide sufficient income to cover your living expenses.  We encourage you to speak to your financial adviser before proceeding with your withdrawal. Alternatively you can contact STANLIB on 0860 123 003 for assistance.

Regulation 28

Regulation 28 of the Pension Funds Act sets the limits in terms of the maximum exposure the retirement fund (in this case STANLIB’s Classic Retirement Annuity Fund) and the individual retirement fund member’s savings (i.e. your savings) may have to various asset classes. For more information please read the Regulation 28 Communication or refer to the Regulation 28 Restrictions document for the guidelines.

For more information please click here

All legislative material, including the registered Rules of the Fund are at all times available to the members.  We welcome members to address questions concerning the Rules – to which our Trustees will respond.

 

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Disclaimer
Figures quoted are from Morningstar for the period ending  for a lump sum, using NAV-NAV prices and do not take any upfront managers charge into account. Income distributions are declared on the ex-dividend date. Actual investment performance will differ based on the upfront managers charge applicable, the actual investment date and the date of reinvestment of income. Past performance is not necassarily an indication of future performance.
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