Saving for your future is simple with the Investec iSelect Retirement Annuity Fund
No matter where you are in life, there’s always tomorrow.
How rewarding your future is depends on how well you plan and make provision for it now. You can start saving for your future by putting away as little as R500 a month into a retirement annuity (RA). That’s our minimum for the Investec iSelect Retirement Annuity Fund (Investec iSelect RA). Your contributions are tax deductible within certain limits.
This is ideal if you are:
- Not yet retired and would like to save for retirement using voluntary monies
- Self employed or are already contributing to an employer's retirement fund and would like to make additional savings for retirement
- Transferring compulsory retirement savings from your employer's retirement fund
- Transferring retirement savings from another retirement annuity to Investec iSelect RA
Features and benefits
- A range of top quality unit trust funds with which to build your portfolio
- The flexibility to switch between unit trust funds as your financial needs change
- Cost efficiency – flat annual administration fees reduced by fund refunds, and negotiable advice fees
- Transparent pricing and performance
- Tax efficiency - contributions are tax deductible within certain limits
- Online transactions and access to portfolio information via a secure website
- Online statements with relevant information that is easy to understand
- A flexible retirement date – any time after age 55
- The freedom to change your contributions, make your RA paid up or transfer to another RA fund without facing any penalties
Minimum investment
| Investec iSelect RA | |
| Debit order | R500 per month (existing invement not required) |
| Lump sum | R50,000 |
| Additional amounts | R10,000 |
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 funds on the iSelect platform have undertaken to refund part or all of the annual administration fee.
| Administration | Unit Trust | Adviser Fee | |
| Initial | 0% | 0% - 0.285% | 0% - 3.42% negotiable between financial advisers and their clients |
| Annual | 0.456% less management company refund |
Please refer to the fund fee table here |
0% - 1.14% negotiable between financial advisers and their clients |
Administration fees using a sample of iSelect funds
|
Investec Managed Fund |
Coronation Balanced Plus Fund |
Investec Opportunity Income Fund | |
| Initial RA product administration fee |
0% |
0% |
0% |
| Annual RA product administration fee (incl. VAT) |
0.456% |
0.456% |
0.456% |
| Refund from management company (incl. VAT)1 |
-0.456% |
-0.456% |
-0.456% |
| Net annual RA product administration fee (incl. VAT)1 |
0% |
0% |
0% |
1Refunds are at the discretion of each management company and are subject to change. The level of refund may also vary, with some management companies providing a refund of less than 0.456% (incl. VAT).
Accessing the investment
- Investors may retire from their investment from age 55.
- At retirement a maximum of one third can be paid out to an investor as a lump sum. The remaining two thirds must be used to purchase an annuity.
- Alternatively, the entire amount may be used to purchase an annuity.
On death
- A lump sum benefit, an annuity or a combination of a lump sum and an annuity may be paid.2
- Tax paid as at retirement (please refer to the table below).
Tax and your RA
| Tax deductible contributions | Tax on investment growth | Tax on proceeds3 | |
|
Contributions are tax deductible to a maximum of the greater of: |
Prior to retirement |
At retirement - maximum one-third lump sum |
At retirement - remaining value (minimum two thirds) |
|
|
|
Transferred into an annuity on a tax-neutral basis. |
2Determined by the rules of the Fund
3Subject to tax as per the Second Schedule of the Income Tax Act