Traditional investing could cost as much as
3% p.a. and more

The OUTvest Retirement Annuity is best suited for those that have a long-term investment objective with the goal of investing to provide an income (annuity) at retirement after the age of 55 years.

There is no limit as to the amount of money you may contribute to the OUTvest Retirement Annuity. We accept both monthly and lumpsum contributions as well as transfers from other retirement funds that you might have.

The law allows an investor to deduct contributions to retirement funds (pension, provident and retirement annuities) of up to 27.5% of their taxable income or gross income whichever is higher to qualify for a tax deduction. This 27.5% limit is not per retirement fund but cumulative (aggregated) across all retirement funds.

There is an annual maximum tax deductible threshold of R 350 000, however all contributions over this threshold can be carried over and used in future years, limited to the applicable restrictions in those years.

Only after you turn 55 years old can you retire from the OUTvest Retirement Annuity subject to the applicable taxation. At retirement, for any non-vested benefits, up to a maximum of one third (1/3) of the money can be taken by the investor in cash (subject to taxation) to invest as they please while the remaining portion must be used to buy an annuity to provide the investor with an income. However if your fund value in the retirement annuity is lower than the R 247 500 after you turn 55 years old, you can access the entire amount in cash subject to taxation.

For any provident or provident preservation fund vested benefits at retirement, you can however take the full benefit as a lump sum, or take a portion of the benefit as a lump sum and purchase an annuity with the rest.

You can also access your funds in the following special circumstances:

• Early retirement due to ill health or permanently disabled
• Formal emigration (financial emigration)
• Fund balance less than R 15 000

In these cases there will be taxation applicable on the cash amount taken.

A board of trustees is responsible for running the retirement annuity and protecting the interests of all members. If you die while still invested in the OUTvest Retirement Annuity the trustees must trace those that are financially dependent on you and allocate the funds appropriately.

Yes, once your money is invested in the OUTvest Retirement Annuity it is protected from all your creditors, thus ensuring you have something to help you retire with one day, even if you were sequestrated.

Basically Regulation 28 (Reg 28) of the Pension Funds Act, means that you can’t invest more than 75% in equities, 100% in cash, 25% in immovable property, 10% in Commodities (Kruger Rands, gold) or 15% in Hedge funds within a retirement annuity. But you need not worry, as the funds you will be able to select from in the OUTvest Retirement Annuity will be Reg 28 compliant.

The intention of Reg 28 is to ensure that investors are not overexposed to unnecessary concentration risk with their retirement money.

Yes, it’s called a Section 14 Transfer and we can assist you with the process. The best part is that this transfer is done tax-free. Please note that due to a number of parties involved in the process these kind of transfers can take some time. But not to worry, we will help you every step of the way.

Vested benefits are accrued rights as a result of any membership in a provident fund or provident preservation fund on 1 March 2021. If you have been a member of these funds at the time, any amounts contributed or transferred to these funds, before 1 March 2021, are seen as your vested benefits. If you were 55 years or older on 1 March 2021, your vested benefits will also include any further contributions you made while you were a member of that provident fund, including fund returns. A vested benefit right gives you the right to be able to withdraw the full benefit value as a lumpsum upon retirement.

Non-vested benefits relates to any other benefits in a retirement fund, which gives you the right to be able to only withdraw up to a maximum of 1/3rd at retirement. The remaining portion of the non-vested benefit must be used to purchase an income for life (Living annuity or guaranteed annuity) at retirement.