Retirement annuity comparison for a lump sum investment
| Allan Gray | Sygnia | |
|---|---|---|
| Most popular Reg 28 (balanced) passive fund | Nedgroup Investments Core Diversified Fund | Sygnia Skeleton Balanced 70 unit trust fund |
| Total Investment cost of above fund (incl VAT) | 0.39% p.a. | 0.51% p.a. |
Which is the best RA in South Africa?
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| 1 | Counterpoint SCI Value Fund Class A1 | 48.18% |
|---|---|---|
| 2 | ABSA Property Equity Fund Class C1 | 45.11% |
| 3 | NinetyOne Property Equity H | 41.81% |
| 4 | PortfolioMetrix BCI SA Property Fund Class A | 40.25% |
| 5 | Satrix Property Index B1 | 37.37% |
How much is the average retirement annuity in South Africa?
Since 2017, the average value of benefits granted has climbed marginally in real terms, averaging around R39 000 per month. The average monthly payment to pension funds, on the other hand, has been reasonably consistent at roughly R900 in real terms.
What is the maximum retirement annuity in South Africa?
There are limits. A maximum of 27.5% of your remuneration or taxable income (whichever is higher), and no more than R350,000, is tax deductible in a tax year. You can contribute more to your RA but after you’ve reached these limits, your contributions are rolled forward and automatically deducted in future years.
How do I get my retirement annuity in South Africa?
Generally speaking, an investor can only access the funds in their RA from age 55 onwards, with no upper age limit for retirement. When you retire from your retirement annuity, you have the option to withdraw one-third of the cash investment, with the first R500 000 being tax-free.
Which pension fund is best in South Africa?
The GEPF manages pensions and related benefits on behalf of government employees. It is Africa’s largest pension fund, with 450,000 pensioners and beneficiaries. The benefits that members of the GEPF receive when they retire depend on how much time they contribute to the fund.
Can I withdraw my RA in South Africa?
In general, you’re able to encash your retirement annuity only when you reach 55 – the legal retirement age in South Africa. If your total investment at that point is worth R247,500 or less, you can withdraw the full amount.