The main challenge during retirement is to make your capital last as long as possible. The percentage income you draw and your investment performance are two big considerations.
Selecting the appropriate retirement income will help balance the need for reliable income with the growth of your invested capital to keep up with inflation.
What is a Living Annuity?
The Living Annuity product offers flexibility both in terms of growth and income generation. This product also allows you to adjust your income drawdown annually as needed without incurring any penalties.
What can a Living Annuity do for me?
When determining how long your money will last you need to consider your consumption rate, level of returns and the rise in living costs. It is important that your capital continues to work hard for you during retirement – and this is the aim of Absa’s Living Annuity Fund.
What does a Living Annuity cost?
The annual fees are calculated on the market value of the units held in the Fund. Financial adviser initial and annual review fees are negotiable between you and your chosen financial adviser, subject to the limits set out by industry bodies.
Minimum lump sum investment
Initial policy charges
Annual policy charges are as follows:
First R 250 000 - 0.75%
Next R 500 000 - 0.50%
Above R 750 000 - 0.25%
The annuity payment received by the annuitant is fully taxable as income. PAYE is deducted at source in accordance with the SARS tax tables.
In the event of investors requiring a lower percentage of tax to be deducted from the annuity payment, a tax directive will have to be obtained annually from SARS.
Any income or capital growth that takes place in respect of the underlying assets of the Living Annuity in the hands of Absa Life, is exempt from any tax, under current legislation.
Download our investment application form
1. Download our investment application form.
2. Complete the form and gather the required documentation.
3. Fax the documents to 0861 339 265 or email them to AIMScc@absa.co.za