Retirement Annuity

Investment Choice

Choose between the Marriott Balanced Fund as the default managed portfolio (Reg 28), or a select range of Marriott Unit Trusts (use our online tool to create your own Reg 28 portfolio).

Income

Automatically reinvested to accumulate capital.

Capital

Capital is accumulated through the tax-free reinvestment of income, and from growth in this income.

Flexibility

• Rebalance your portfolio at any time, no CGT incurred.
• Start, increase or cancel your debit order at any time.
• Top up your investment with additional lump sums at any time.

Withdrawals

Pre-retirement withdrawals (subject to tax):

A Member will not have access to the benefits prior to reaching 55 years of age, except in the following circumstances:

• From the Savings Component (in part or in full) once each tax year, minimum R2,000 per withdrawal. If the entire Savings Component is withdrawn there will be no balance to withdraw in the next tax year or at retirement, except for clients who make further contributions.
• Where the total market value of the whole investment is less than the prescribed legislated amount, currently R15 000 (full withdrawal).
• On emigration, as recognised by the South African Reserve Bank, or Cessation of SA Residency (full withdrawal).
• Ill-health early retirement.

At Retirement (age 55 years and older):

Transfer your Retirement Annuity (at no cost and tax-free) to our living annuity (the Perpetual Annuity) to provide you with a monthly income.

Or alternatively, withdrawals (subject to tax) can be made as follows:

• Retirement Component: No withdrawals, 100% must be used to buy an annuity to give you an income in retirement. If the Retirement Component plus 2/3 of the Vested Component is R165,000 or less, then a full cash lump sum withdrawal is permitted.
• Savings Component: 100% lump sum withdrawal of any remaining balance is permitted.
• Vested Component: 1/3 cash lump sum withdrawal permitted. 2/3 must be used to buy an annuity to give you an income in retirement. If 2/3 of the fund's Vested Component plus the Retirement Component is R165,000 or less, then a full cash lump sum withdrawal is permitted.

Tax

• Contributions: Tax deductible up to 27.5% of the higher of your remuneration or taxable income, to a maximum of R350,000 (This is on total contributions to all retirement funds. If you contribute more you can carry them over to the next tax year).
• Income: No Income Tax.
• Dividend Withholdings Tax is not applicable.
• Capital: No Capital Gains Tax (CGT).

Death

You may nominate dependents and beneficiaries. Beneficiaries can elect to receive a lump sum (subject to tax legislation) or to transfer the investment to an annuity.