The main purpose of your retirement fund is to accumulate enough retirement savings to provide you with a regular and reliable income after you retire. Actuarial professionals in the retirement industry agree that your final retirement benefit should provide you with, at least, a minimum pension income of 75% of your final annual fund salary; we say it should be between 80-85%. The pension should allow for yearly increases so that your income is not affected by inflation (also known as the Consumer Price Index, CPI)

We have the resources and knowledge to help you track your retirement savings to make sure you retire with enough money to keep the standard of living you are accustomed to when you retire.

As with any long term investment, compounding Interest play’s a major role, as well as the cost and fund availability of a product/investment.

Tax deductibilty for different pension fund contributions:

Investment options for Retirement

  1. Pension Fund
  2. Provident Fund
  3. Retirement Annuity

Pension and Provident Funds

Funds established by an employer to facilitate and organize the retirement funds contributed by the employer and/or employees are known as a Pension or Provident Fund. Pension funds are a common asset pool meant to generate stable growth over the long term and provide capital and income for employees when they reach retirement. These funds are normally administered by a Financial Service Provider, some corporates does this in-house.

The difference between pension and provident funds are mainly at retirement. With a provident fund a member may make a full withdrawal at retirement, where as with a pension fund the member may not withdraw more than 1/3rd of the value in cash.

Tax calculations at retirement (in Rands).

0 - 315 000 0%
315 001 – 630 000 18% of the amount over 315 000
630 001 – 945 000 56 700 + 27% of the amount above 630 000
945 001 and above 141 750 + 36% of the amount above 945 000

Tax calculations on withdrawals before retirement

0 – 22 500 0%
22 500 – 600 000 18% of the amount over 22 500
600 001 – 900 000 103 950 + 27% of the amount above 600 000
900 001 and above 184 950 + 36% of the amount above 945 000

Retirement Annuity:

We are able to offer you information and training on a comprehensive array of investment options, administrative platforms, fund options, investment tools etc to structure your retirement annuity to best suit your individual retirement savings needs. Our training will help you to build up your retirement capital securely, tax-efficiently and as cost effectively as possible. There are many different retirement annuity investment options available in the market today, but the two major factors to consider are cost and fund availability.

Retirement annuities forms part of your retirement planning. This is an ideal tool for members contributing towards pension and provident funds, looking to supplement existing retirement provision with maximum tax efficiency. Members without pension or provident funds can maximise their tax efficiency through contributing towards a retirement-annuity. You can save up to 15% of your non pensionable income (Gross income if you do not have a pension / provident fund) towards a Retirement annuity and deduct the contribution from tax.

Important factors to consider are:

  1. Cost, (administrative, fund and advice fees)
  2. Investment Platform,
  3. Fund availability for portfolio segmentation, (Reg 28 Funds)
  4. Exit or cancellation fees
  5. Compounding Interest is your biggest tool!

We will advise & assist you on how to:

  1. Invest cost effectively,
  2. Maximize maturity values,
  3. Select and change funds, as environment and circumstances change,
  4. Use the most effective administrative platform,
  5. Calculate your future and present values.
  6. Plan for Retirement


An individual saving R 1 000/pm from age 25 can earn up to R8.9mil more by applying our principles on his/her Retirement Annuity. (Same risk, same inflation assumptions)

FEAD vs traditional retirement Annuity
FEAD vs traditional retirement Annuity

An individual saving R 4 000/pm from age 40 can earn up to R4.9mil more by applying our principles on his/her Retirement Annuity. (Same risk, same inflation assumptions)

FEAD vs traditional retirement Annuity
FEAD vs traditional retirement Annuity

Preservation Fund (pension and provident)

A preservation fund gives you the opportunity to preserve pension or provident fund savings when you are dismissed, retrenched or when you change jobs. One common mistake is taking the cash, pay tax and spend these savings. Remember that it is not the cash you lose but time (Compounding effect).

A preservation fund is suitable for individuals who want to invest their withdrawal benefits from their previous employer’s provident or pension fund in a tax-efficient safe haven.

Important factors to consider are:

  1. Cost,
  2. Investment Platform,
  3. Fund availability for portfolio distribution,
  4. Taxability of a withdrawal,
  5. Compounding Interest is an important tool; make sure you keep on saving towards retirement.