General - Forms and Documents

  1. SARS Tax Directive Simulation Request

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The LifeCycle Retirement Funds
Retirement Form

Instructions

  1. Please send the completed Retirement Form (pages 1 – 4) to the administrator at lifecycle@thecycle.co.za.
  2. Attach a copy of your bank detail / completed annuity application form / copy of your ID.
  3. Cut of time for receiving instructions is 11:00 (SA).
  4. Complete a separate form for each product.

Fund Details

Log onto the website https://secure.thecycle.co.za to view your membership number

Personal Details

Your income tax reference number is compulsory for the tax directive that we must request from SARS. Income tax reference numbers start with a 0, 1, 2 or 3 and are ten digits long.

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Retirement Instructions

Complete section below

  1. Annuity Details
  2. Investor Declaration

Complete section below

  1. Cash Commutation
  2. Bank Details
  3. Annuity Details
  4. Investor Declaration

Complete section below

  1. Cash Commutation
  2. Bank Details
  3. Investor Declaration

Cash Commutation

Take a portion in cash

Portion of your benefit to be taken as a cash lump sum (select one of the options below): 

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** Please note that the cash lump sum may not exceed one third of your benefit. The cash benefit will be reduced by applicable tax.

Full benefit in cash

If you are a member of the LifeCycle Preservation Provident Fund you may take the full benefit in cash.
If you are a member of the LifeCycle Retirement Annuity or Preservation Pension Fund the full benefit may be taken as a cash sum if less than or equal to R245 000 on the date of disinvesting the benefit to cash.
This amount can change as determined by legislation or the regulatory authorities from time to time.
** Please note that the cash lump sum will be reduced by any tax that may be payable as determined by legislation.

Bank Account Details for Cash Payment

  • A cancelled cheque or bank statement must be attached as proof of banking details. (Upload below)
  • The account holder must have a South African bank account.
  • No payments will be made into third party bank accounts, home loan accounts or credit cards (in terms of Section 37A of the Pension Funds Act, no funds may transferred from a Retirement Annuity Fund to an account number held by a third party).

Annuity Details

PART 1

Please complete The LifeCycle Living Annuity Application Form and submit together with this Form to lifecycle@thecycle.co.za 

PART 2

Please provide a copy of the completed application form of the Insurer that will provide this Annuity.

The bank account of the Annuity Fund:

Investor Declaration

  1. I understand that the cash lump sum (if any) requested above is a pre-tax amount and that the Administrator will have to apply for a tax directive and withdraw any tax payable from this amount before payment may be made to me.
  2. I have read and understood the Important Tax Information attached hereto.
  3. I have read and understood the risk warning attached hereto.
  4. I hereby instruct and authorise the Fund to pay all the monies due in accordance with the instructions above, subject to the Rules of the Fund.
Sign Here
Sign Here
** If signing on behalf of the investor please provide proof of authority and supporting verifying documentation.

Risk Warning

A living annuity allows you to set your income level subject to constraints imposed by the authorities from time to time and allows you to select a wide range of investments in respect of the capital that will generate the annuity. The level of income you select is not guaranteed for the rest of your life. The level of income you select may be too high and may not be sustainable if:

  • you live longer than expected with the result that the capital is significantly depleted before your death; or
  • the return on the capital is lower than that required to provide a sustainable income for life.

It is your responsibility (in consultation with your financial advisor) to ensure that the income that you select is at a level that would be sustainable for the rest of your life. You need to carefully manage your income drawdown relative to the investment return on the capital in order to achieve this. The table below can be used as a guide.

Years before your income will start to reduce:

Investment Return per Annum
(before inflation & after all fees)
Annual
Income
Rate
selected
at
Inception		  
2.50%
5.00%
7.50%
10.00%
12.50%

2.50%
21
30
50+
50+
50+

5.00%
11
14
19
33
50+

7.50%
6
8
10
13
22

10.00%
4
5
6
7
9

12.50%
2
3
3
4
5

15.00%
1
1
2
2
2

17.50%
1
1
1
1
1

It is important to note that the table above assumes that you will adjust your percentage income selected over time to maintain the same amount of real income (i.e. allowing for inflation of 6% per annum). Once the number of years in the table above has been reached, your income will diminish rapidly in the subsequent years.

Please ensure that your financial advisor has explained both the advantages and the risks of the living annuity and compared these against conventional annuities (where the insurer carries the full investment risk and the risk of you living longer than expected). The table is a general guideline and should be considered taking into account each annuitant’s financial situation and all other sources of income. It is an indicative guideline only, to assist you in making informed decisions in respect of your annuity.

It is important to note that investments held in your living annuity are made up of various types of assets classes such as equities, bonds, property or cash. These underlying assets have different levels of risks and returns associated with them. You and your financial adviser are therefore reminded to carefully consider the overall composition of your living annuity in terms of the exposure to these various asset classes.

Too high a proportion of risky assets means there is a greater risk of losing capital while too low a proportion of risky assets means there is a risk that investment returns may be too low to sustain your income. In order to protect a member’s retirement savings, the Pension Funds Act regulates the maximum limits to the different asset classes that a retirement fund may expose itself too. These limits are there to give guidance to what may be considered prudent investment limitations. However, this should never be seen as a substitute for obtaining professional advice and does not take your specific personal circumstances into account.

Broadly speaking the maximum exposure that retirement funds may have to the various asset classes are as follows: -

75% to equity investments
50% to non-government debt instruments
25% to offshore investments
25% to property investments
15% to hedge funds, private equity funds and any other asset not specifically mentioned aggregated together
10% to commodities like gold

This regulated exposure will apply while you are saving up to your retirement through an approved retirement fund and if you purchase an annuity within the retirement annuity fund. After retirement, when you are normally dependent on receiving a regular and stable income, a more conservative approach to asset selection may be desirable. You are encouraged to review your living annuity investment strategy, as your capital within your living annuity may be exposed to undue risk.

Get In Touch!

lifecycle@thecycle.co.za

www.thecycle.co.za

Additional Resources

D and D The Cycle Pty(Ltd)

13B Administrator 24/767
Authorised Financial Services Provider
FSP no: 45863

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