Living Annuity

Mosaic Invest’s living annuity is a post-retirement product that pays you a steady income while your remaining retirement savings continues to enjoy capital growth.

You make a lump sum transfer from your retirement fund or from an existing living annuity.

Yes. A living annuity is exempt from taxes applicable to dividends received, interest income, real estate investment trust distributions (from property funds) and capital gains tax.

A minimum lump sum amount of R100 000 applies.

You can withdraw between 2.5% and 17.5% of the value of your living annuity per annum. The withdrawal rate can be adjusted each year. We can help you to determine how much you can withdraw without prematurely depleting your retirement savings.

It is paid directly into your bank account either quarterly, bi-annually or annually in advance or monthly in arrears.

Annuity income is taxed per the normal personal income tax table.

Maybe. That is why it may be prudent to combine a living annuity with a guaranteed annuity. We can help you to determine which combination is most suitable for you.

Yes. There are no penalties when you port your living annuity from Mosaic Invest to another company.

Yes. You may convert your living annuity into a guaranteed annuity at any time.

Yes. Your living annuity is protected against the claims of creditors.

Not necessarily. If you are married in community of property or out of community subject to accrual, a divorce order may grant a portion of your living annuity to your spouse.

The remaining value of your living annuity will be paid out to your nominated beneficiaries. The beneficiaries may elect to receive the proceeds as an annuity, a lump sum or a combination of both. If no beneficiaries are nominated the remaining value will be paid to your estate.

The underlying investment is the Mosaic Invest Balanced Portfolio, a regulation 28 compliant multi-asset portfolio specifically designed and managed to serve the retirement savings needs of South African individuals.

Regulation 28 protects your retirement savings by imposing certain prudent investment restrictions.

No. The living annuity value is investment linked.

An administration and investment management fee apply. See the living annuity application form and portfolio disclosure document for full fee disclosures.

You will receive regular investment statements per e-mail. You can also access the disclosure document of the underlying portfolio on our website at any time.

The living annuity is regulated by the Financial Services Board in terms of the Long-Term Insurance Act. Standard Bank serves as custodian, KPMG as auditor and the policy is underwritten by Prescient Life.

You simply complete our application form and provide the necessary FICA documents. As easy as that.