RA transfers - what investors should know

RA season is upon us again and you may be reviewing your clients' retirement portfolios.

Changes to the Pensions Funds Act have paved the way for investors to move from one service provider to another, should they wish to do so. In addition to the traditional life assurance RAs, there are a host of unit trust RAs, which offer a cost efficient and flexible way to save for retirement. However, a transfer does not always make sense. We explore the issue of penalties, and a variety of other factors that investors need to consider when contemplating a move.

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It makes sense to wrap unit trusts in an RA

Unit trusts remain one of the most convenient and transparent ways to invest in your future.

When saving for retirement some people consider investing in unit trusts rather than making use of RAs. They believe that this is a more cost efficient way to save for their future. The good news is that unit trust RAs can be just as cost efficient as investing in unit trusts without an RA wrapper. What's more, unit trust RAs offer a host of tax advantages and other benefits. By saving on tax, investors can help to grow their nest egg faster.

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Investec iSelect RA - a transparent and simple pricing structure

No initial product fees and a simple flat annual administration fee make Investec iSelect RA one of the most cost efficient ways to save for retirement.

In addition, the unit trust funds on the iSelect platform have undertaken to refund part or the entire annual administration fee. By saving as little as R500 a month or by making a lump sum contribution of R50 000, investors can grow their retirement nest egg. Investec iSelect RA offers flexibility as it allows investors to change their retirement date, modify their contributions or switch between underlying funds at any time.

Read more about the Investec iSelect RA >