Liberty Investments Retirement Annuity Plan

It is always a wise financial decision to set aside additional funds for retirement, even if you are a member of a company pension or provident fund plan. Of course, if you are self-employed you have little choice but to make provision for your own retirement. The beauty of a retirement annuity is that it functions independently of your employment or your employer and is also a perfect savings vehicle for self-employed individuals or those who want to supplement an existing pension or provident fund.

The Retirement Annuity Plan is aimed at investors who want to create wealth for a secure retirement. It provides access to world-class investment management and portfolios constructed to meet the needs of long-term investors. It can be tailored to suit your specific investment needs.  

How it works

The Retirement Annuity Plan is a retirement plan where you can make a lump sum investment. However, it also provides you with the flexibility to pay additional amounts into the policy at any time so you can benefit from future tax deductions.

Minimum Premiums

The minimum premiums are as follows:

  • Per policy -- R12 500 
  • Per investment portfolio -- R2 500 
  • Any additional premiums -- R2 500

Retirement Age

You can select any retirement age from 55 onwards. The policy has added flexibility in that you can defer retirement beyond your initial selected retirement date if needed. The investment can only be accessed prior to age 55 in the event of you becoming permanently disabled or via payments relating to divorce, maintenance and emigration.

What happens at retirement?

At retirement, you may take up to one-third of the proceeds of the investment as a lump sum. The balance must be used to purchase a compulsory annuity. If you have more than one retirement annuity policy in the retirement fund, you have the opportunity to retire from each policy at different dates. This gives you the flexibility to receive benefits in line with your changing income needs.  

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To find out more, please contact a Liberty Financial Adviser.