Retirement is a time for being alive. It’s when you can finally let go of the shackles of the daily 9 – 5. Get rid of the limiting your ‘me-time’ to weekends and 15-20 days of annual leave. A time to relax, travel, and pursue your passions without the constraints of work and obligations of life.
But truth is, 6%* of South Africans can actually comfortably. That means 94% of us have some serious work to do if we want to retire at our dream age or even just retire comfortably. That’s why we want to redefine retirement and change the percentage. After all, achieving any of your life goals requires a clear strategy and goal-based planning, so you can be financially independent in retirement.
We are as invested in your retirement goals as you are. No matter where you are in your retirement journey, we can help you achieve your retirement goals with our pre- and post-retirement solutions, as well as sound advice from our accredited Financial Advisers.
We have a range of investment strategies to suit different goals, giving you the option to tailor-make solutions so you can pursue your passions and live the life you want in retirement. This is just one way we can help you redefine your retirement. Investing together in your retirement goals.
What is a Retirement Annuity?
A retirement annuity is a tax-effective retirement investment, which is designed for individuals who want to save towards their retirement. This may be in addition to your existing pension or provident funds that you already participate in through your employer.
From 1 September 2024, the new Two-Pot Retirement System will come into effect. It will preserve a portion of your retirement savings and will also allow you to withdraw a portion of your retirement savings in the case of financial need. To learn more about this and the conditions under which you can make withdrawals please click here.
Why should you consider investing in a Retirement Annuity?
All or a portion of your contribution may qualify for a tax deduction thereby reducing your tax bill, while the growth in the retirement is tax free. Additionally, because the money can only be accessed at retirement (from age 55), it helps you improve your investment discipline. Your funds are protected from creditors to safeguard your retirement savings.
What are the benefits of investing in the Liberty Retirement Annuity?
Exact Income Fund: The optional Exact Income Fund is a one-of-a-kind portfolio that guarantees exactly what your retirement income will be from the moment you invest. Additional retirement income is secured and guaranteed when further amounts are allocated to this portfolio.
High-Water Mark Guarantee: Protect your investments best returns every quarter with the optional High-Water Mark Guarantee. This will protect 80% of the portfolio’s best investment performance as measured at the end of each quarter. When you have a new best, it locks it in. The guarantee runs for a five-year period. At the end of the guarantee period your investment gets a top up if the value of your guaranteed portfolios is below the guaranteed level.
A great amount of choice: You can choose investment portfolios from some of the top asset management companies in the country.
Aggregation: Portfolio growth is not the only factor affecting how much you are able to enjoy in your retirement – fees are also important. To this end, we have introduced aggregation which means that if you have two or more qualifying Liberty investments, we will combine the investment values to reduce the overall platform fee that you will pay on your retirement product. If you cancel, transfer or surrender any of your qualifying Liberty investment products or take an advance on any of these products, then the platform fee will be adjusted accordingly.
How do you invest in the Liberty Retirement Annuity?
You can invest through regular monthly debit orders, a lump sum investment or a combination of the two.
What is the minimum amount you need to invest?
Invest a R15,000 lump sum or invest with recurring investments of at least R500 per month.
How much does it cost to invest?
The Exact Income Fund has no platform or portfolio fees. Your investment in other investment portfolio will incur portfolio fees, platform fees, guarantee charges (if you select one of the optional guarantees), initial advice fee for your financial adviser and the agreed ongoing advice fee for your financial adviser.
For more details about benefits, definitions, guarantees, fees, tax, limitations, charges, premiums/contributions or other conditions and associated risks, speak to a Liberty Financial Adviser or your Broker and request a quote.
*Source: South African National Treasury – Statement on the Impact of the Proposed Retirement Reforms
Disclaimer
The summary information contained herein does not constitute advice by Liberty. Any legal, technical, or product information contained on this webpage is subject to change from time to time. If there are any discrepancies between the content herein and the contractual terms and conditions or, where applicable, any fund rules, the contractual terms and conditions or fund rules will prevail. Past performance cannot be relied on as an indication of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by prevailing market conditions. Any recommendations made by a financial adviser or broker must take into consideration clients specific needs and unique circumstances.
For more details about benefits, definitions, guarantees, fees, tax, limitations, charges, premiums/contributions or other conditions and associated risks, please speak to a Liberty Financial Adviser or your Broker.
Liberty Group Limited is a licensed life insurer and an Authorised Financial Services Provider (no. 2409). Terms and conditions, risks and limitations apply
