What is a retirement annuity?
A retirement annuity
is a way to save for your retirement.
You can contribute to a retirement annuity on its own or you can contribute to a retirement annuity in addition to other retirement savings vehicles you have.
Retirement annuities come with tax benefits and this is one of their main appeals.
But retirement annuities have some strict guidelines…
Make explosive Forex profits with this tiny book!
Find out more here!
It takes a match to start a forest fire.
It takes a little seed to create an entire human being.
And it takes this tiny book to make you a Forex income to last a life time!
The rules of a retirement annuity
You can’t retire from your retirement annuity until you’re 55 years old. But if you become incapacitated or disabled, you will be able to retire from the fund prematurely.
Even if you stop contributing to your retirement annuity, you still can’t gain access to the funds until you turn 55.
When you reach 55, you don’t have to retire from the fund, you can put this off as long as you want. For example, you want to continue working until you’re 65, so you could continue to contribute to your fund.
When you reach retirement, you can’t take more than one third of your retirement annuity savings. The first R500,000 of this is tax-free.
The remaining two thirds must go towards buying an annuity or other form of monthly pension. You can decide which provider to go with. You don’t have to stick with the provider of your retirement annuity.
There is some flexibility when you pick a retirement annuity. You can decide what type of investments it focuses on. This should coincide with your attitude to risk.
So there you have it. What a retirement annuity offers you.
*********** New release ************
How to save R109,070 over the next five years.
We’re prepared to give you our best research – but only If you enrol in the Alliance
before October 31st 2015.
The FSP Financial Alliance
has created more wealth for our readers, faster, than any single research service we offer.
For the most powerful opportunity to make money you’ll see in your lifetime click here…