What is the LifeCycle Retirement Annuity Fund (RA)?
The LifeCycle Retirement Annuity Fund (“the Fund”) is a personal retirement savings vehicle which allows you to save for your retirement in a tax-ecient manner. The Fund is a legal entity which is managed by a Board of Trustees who are appointed to control and oversee its operations.
The LifeCycle Retirement Annuity Fund is a personal and/or group retirement savings vehicle which allows you to save for your retirement in a tax-efficient manner. You may transfer your existing RA to the LifeCycle Retirement Annuity Fund and there will be no penalties should you wish to transfer your LifeCycle Retirement Annuity Fund benefit to another provider.
You are also able to choose the level of income that you would like to draw from your living annuity. You can choose to draw an income in two dierent ways:
- As a rand amount (fixed or growing at inflation / some other percentage per annum)
- As a percentage of your capital at the start of each year e.g. 5% of your retirement capital
Whether you choose option 1 or option 2, the income that you specify must be between 2.5% and 17.5% of your retirement capital, by law.
You can specify the frequency of your income payments (monthly, quarterly, bi-annually, annually) and you are able to adjust your income level on an annual basis on the anniversary of your investment in the annuity.
You can specify the frequency of your income payments (monthly, quarterly, bi-annually, annually) and you are able to adjust your income level on an annual basis on the anniversary of your investment in the annuity. The income that you receive will first be taxed according to prevailing pensioner PAYE tax rates.
You may transfer your existing living annuity to LifeCycle, and there will be no penalties should you wish to transfer your living annuity from LifeCycle to another provider.
In the event of your death, the value of your death benefit will be your remaining investment value. Your nominated beneficiaries will receive a benefit in the proportions set out on the beneficiary nomination form.
Why, How Much and How?
Why LifeCycle Living Annuity?
The Fund provides you with a tax-efficient, low cost, flexible retirement savings product
which is easy to understand. The contributions that you make to the Fund will be tax-deductible
on an annual basis as follows:
- Up to 27.5% of your taxable income is allowed as a tax deduction; or
- A maximum of R350 000 per annum in aggregate;
Not only are the contributions to the RA deductible in your hands, but income, capital gains and dividends generated from the investments are exempt from taxation. The Fund is flexible and you are able to make an initial lump-sum contribution as well as making on going contributions by debit order. This option allows you to make changes to your contribution rates as well as to suspend contributions if necessary.
The Fund will give you access to a range of investment options with exposure to all the relevant asset classes. The various investment options are managed by Clyde Investment Management (Pty) Ltd and a number of other managers.
What is it going to cost me?
You will pay an on-going administration fee which depends on the size of your investment. All fees are quoted as a percentage of assets excluding VAT, under management on an annual basis: In the event of your death a fee may be raised to enable the administrator and sponsor to trace your dependents and allocate the death benefit payable to your dependents in terms of the Pension Funds Act.
If you want more information please request a quote by sending a mail to email@example.com and the administrator will communicate with you. Your investment will need to be compliant with Regulation 28 of the Pensions Fund Act No.24 of 1956. Please remember that should your investments breach any of the regulation 28 requirements the Trustees will adjust your portfolio holdings to ensure compliance. The on-going administration fee includes web access. The investment management costs are shown in the fund fact sheet of the relevant investment option.
What do I do to get started?
- Obtain a quotation by sending a request email to firstname.lastname@example.org
- Complete the LifeCycle Retirement Annuity application form
- Compile the following supporting documentation:
- ID document containing a photo, full names, date of birth and ID number, valid passport or a valid driver’s licence
- A document no older than three months containing residential address that is a utility bill, bank statement, rates account or tax invoice
- Proof of banking details
- Proof of SARS registration
- Send the completed application form and
supporting documentation to LifeCycle at: email@example.com
- The administrator of the fund will provide you with the following:
- Online access to the administration system to view your account where you can view all transactions processed on your account from inception and for any period
- A transaction confirmation statement and a policy document
- Annual benefit statements
- If any of the above is not clear, you can obtain further information from LifeCycle.
Contact us on:
Phone: 083 630 4359