Retirement Annuity

Mosaic Invest’s retirement offering allows individuals to accumulate and grow their wealth until they are ready to retire when they can covert that wealth into annuity income.

A retirement annuity is one of the most efficient ways to save for your retirement.

Yes. Contributions to retirement annuity are tax deductible up to 27.5% of your gross remuneration or taxable income (whichever is the higher), subject to an annual limit of R350 000.

No. Your retirement savings are exempt from taxes applicable to dividends received, interest income, real estate investment trust distributions (from property funds) and capital gains tax, if it remains within the retirement fund.

It is recommended that your retirement savings should allow you to earn income during your retirement equal to 70% – 90% of your current gross salary. We can help you to determine how much to save per month to achieve that target.

You can either contribute with a recurring monthly debit order or you could make ad hoc lump sum payments.

No. You will not be allowed to access your retirement savings until you until you are 55. You can, however, access your retirement savings if you are forced to retire early due to ill-health or if you emigrate from South Africa.

No. You can invest in more than one retirement fund.

Yes. You can stop making contributions to your retirement annuity at any time.

Yes. Your employer can make contributions directly to your retirement annuity on your behalf.

You can invest from as little as R500 per month via debit order or R10 000 once-off.

Yes. There are no penalties when you port your retirement savings from Mosaic Invest to another retirement fund.

At retirement, you convert your retirement savings into an annuity that provides you with income for retirement. We can help you to determine which combination of fixed (life) and investment linked (living) annuity is most suitable for you.

Annuity income received during retirement is taxed per the normal personal income tax table.

At retirement, you can take up to one third of your retirement savings as a cash lump sum. If your retirement savings is less than R247 500 you may elect to receive the full benefit as cash.

The lump sum withdrawal is taxed per the lump sum withdrawal tax table. The first R500 000 is free of any taxation.

Yes. Your retirement savings is protected against the claims of creditors. There are a few exclusions contained in the Pension Fund, Income Tax and Maintenance Act.

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 retirement savings to your spouse.

The trustees of the retirement fund will distribute your retirement savings to your dependents.

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.

Retirement fund and portfolio administration fees and an investment management fee apply. See the retirement fund 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 retirement annuity is regulated by the Financial Services Board in terms of the Pension Fund Act. Standard Bank serves as custodian, KPMG as auditor and Prescient Life as the administrator of the retirement fund.

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