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about
Introduction
Save on tax while saving for retirement with our flexible retirement annuity. Get access to a wide range of well-researched and well-known underlying investment options.
- Minimum contribution
R100,000 lump sum
Monthly contributions: R1,000 if lump sum was received, R2,500 if no lump sum was received
R15,000 per additional investment
- How long to invest for
You must remain invested until you are at least 55 years old.
guidance
How it works
options
Freedom to move your money
You have total freedom to change your underlying investments. There is no charge to make a change, but depending on where you move your money to, initial investment charges may apply.
Your investment choices
A wide range of collective investment funds.
Wrap funds, managed by discretionary investment managers.
Listed shares.
benefits
What the Glacier Retirement Annuity offers you
You benefit from tax deductions based on your contributions. You have the flexibility to stop and start contributions if your circumstances change. If you are in a process of insolvency, your retirement annuity investment is protected from creditors – they won’t be able to take from your savings.
insights
Access to your money
- Before you retire
Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. In summary, your retirement savings are divided into 3 components, and each component gets treated differently.
Vested component: You have limited access to the funds until you retire. Access to the funds can be obtained in the case of disability, death or emigration (three years’ cessation of tax residency).
Retirement component: No access at all, except in the case of emigration (three years’ cessation of tax residency), disability or death, subject to the applicable fund rules.
Savings component: One withdrawal per tax year, subject to taxation according to the individual income tax table. The value of the withdrawal must be at least R2 000 before costs, but there is no maximum withdrawal value.
- When you retire
When you retire, you will be allowed to take a portion of your savings as a lump sum. The remainder must be used to purchase an income-generating product (compulsory annuity) such as an Investment-linked Living Annuity, or a Life Annuity. These aim to provide you with an income for the duration of your retirement. Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. Read more about the Two-Pot System here. In summary, your retirement savings are divided into 3 components, and each component gets treated differently at retirement:
Vested component: Benefits in the vested rights portion* of this component will be available as a lump sum (subject to taxation), as an annuity, or as a combination. Benefits in the non-vested rights portion* are subject to the purchase of a compulsory annuity (to provide you with an income during retirement) with at least two-thirds of the value. Members who were previously members of a provident fund, may have both a vested and non-vested rights portion inside their vested component.
Retirement component: All benefits must be used to purchase a compulsory annuity to provide you with an income during retirement.
Savings component: You can take the full amount as a lump sum, or use it to purchase a compulsory annuity.
If the full value of the retirement component + two-thirds of the non-vested rights portion in the vested component is equal to or less than R165 000, the full value of the retirement component and the non-vested rights portion of the vested component may be taken as a taxable cash lump sum.
- Early retirement
If you are permanently disabled before you retire, your benefit is paid out to you in the same way as if you had reached retirement (aged 55).
- When you die
Your dependants may benefit from the money after you are gone.
Trustees will take into account your wishes and all your dependants’ needs when you die to decide who receives this benefit.
Benefits can be paid as a lump sum, or it can be transferred to a post-retirement product to provide a regular income.
It is also possible to have one-third of the benefit paid as a lump sum and the rest transferred to a post-retirement product.
- The vested and non-vested rights portions
If you were previously a member of a provident fund, the vested component of your preservation fund might be split into a vested rights portion and a non-vested rights portion due to legislative changes that came into effect on 1 March 2021.
Vested rights portion: For all members: Contributions made to a provident fund or provident preservation fund before 1 March 2021 plus growth thereon will have vested rights attached to them (which means that the rules applicable to provident and provident preservation funds before 1 March 2021 still apply). For members who were 55 or older on 1 March 2021: Contributions made to a provident fund or provident preservation fund from 1 March 2021 onwards plus growth thereon will have vested rights attached to them if the member remains a member of the same fund until retirement and does not opt in to the two-pot retirement system.
Non-vested rights portion: For existing members who were younger than 55 on 1 March 2021, as well as new members who joined on or after that date: Contributions made from 1 March 2021 onwards plus growth thereon will not have vested rights attached to them. In this context, it means that the member will be required to annuitise at least two-thirds of the proceeds at retirement, in other words they must use it to purchase an annuity to provide them with an income during retirement.
charges
Tax and fees
Fees vary per product and underlying investments. Please speak to your financial planner to make sure you understand which fees you pay and why.
Tax benefits
A portion of your contributions is tax deductible.
You don't pay tax on any interest or dividends.
No CGT is applicable.
What is taxable
There is tax on any portion of your retirement savings that you withdraw in cash when you retire.
There is tax on any withdrawal benefit.
resources
Find additional resources to support your financial journey
Additional resources
Select all | ||
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| Glacier Investment-linked Living Annuity (ILLA) | ||
| Life Annuity | ||
| Retirement Fund Member Information (Two-Pot System) |
Select All |
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Glacier Investment-linked Living Annuity (ILLA)
Life Annuity
Retirement Fund Member Information (Two-Pot System)