Invest in retirement annuitties

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Retirement Annuity Fund

WHAT IS A Retirement Annuity?

A retirement annuity is merely a private pension plan. Retirement annuities were first introduced in South Africa in 1960 and were designed to enable self-employed people to qualify for the same tax treatment and deductions as those employees who were provided for by their employers by way of provident or pension funds.

Retirement annuities are recommended for self-employed people, those who earn commissions, performance bonuses or other windfall-type income, employees who wish to top up any investment made on their behalf by their employer, as well as any individual wishing to save for retirement.

The Retirement Annuity Fund via PSG Online offers you a personal retirement savings vehicle that is simple, low cost, flexible and with a wide range of investment choices. What's more, you'll have online, anytime, access to your chosen portfolio.

Retirement annuities are personal pension plans which have been designed to allow you to contribute to your own retirement, or top up an existing company provident or pension fund benefits to save for retirement in a tax efficient vehicle.

Retirement annuities allow for flexible investing. You decide on the structure of your underlying choice of unit trusts subject to Regulation 28. However, if you would like to use the services of a financial advisor, click here.

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HOW CAN I INVEST IN THE Retirement Annuity via PSG ONLINE?

If you are interested in investing in a retirement annuity through PSG Online you should complete the simple online registration process.

What are the advantages of investing in a Unit Trust based retirement annuity?

The generally recognised benefits of investing in a retirement annuity product include the following:

Does the Retirement Annuity have any further benefits?

The retirement annuity via PSG Online is a unit trust-based retirement annuity (as opposed to a retirement annuity offered by an insurance company). Unit trust retirement annuities are sometimes referred to as 'new generation retirement annuities' because they were launched in response to the traditional insurance-based retirement annuities. Unit trust retirement annuities have the following features.

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What are the disadvantages of Retirement Annuities Fund?

Your benefits may, under normal circumstances, only be accessed at retirement. The minimum retirement age is 55 years old.

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What are the costs of investing in the Retirement Annuity?


For retirement annuity accounts please make deposits to the following bank account with your portfolio number as a reference:

Bank Standard Bank of S.A. Ltd
Account number 000027138
Account name PSG Life Compulsory Deposit Account
Branch Johannesburg (000205)
Account type Current
Deposit reference number Your unit trust portfolio reference number or ID number

register For a full list of PSG Online banking details click here.

Risks you need to be aware of

All investing products carry stock market risk. However, when investing over the long term for retirement, there is a greater risk of not taking enough risk, at investing at risk levels high enough to outperform inflation.

Of all the financial services and products available, retirement products are amongst the most regulated. Financial service providers and their agents have to comply with numerous rules and regulations. They are also closely monitored by the Financial Services Board.

The role of unit trusts in your overall strategy is dependent on your overall investment strategy. If you are uncertain as to which funds to choose or how much to invest, allow us to help you formalise your wealth strategy through a process of financial planning to create an investor profile which suits your goals. Otherwise contact a PSG Konsult financial advisor if you would like someone to invest in unit trusts on your behalf.

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Which Unit Trust funds are available for PSG Online investors to select for their RA portfolios?

register Please click here to view a complete list of our funds and fees.

Other Questions

Q: Will there be limits on the number of switches permitted each year?
A: Currently no. However, excessive switching is generally not sensible investing.

Q: What happens to my RA investment when I reach 55?
A: When you retire from the fund, you can take a third of the capital in cash. The remaining two thirds must be used to purchase an annuity.

From 2008, the upper age limit of 70 was removed. This means that there is no longer a compulsory retirement age for members of retirement annuities. If the entire benefit at the time of retirement is less than R75 000 (R 150 000 from 1 March 2015), the entire amount can be taken as a lump sum, there is no requirement to transfer two thirds into a living annuity vehicle.

Q: What happens if I want to emigrate?
A: If you emigrate, the entire benefit can be taken as a lump sum (subject to exchange control regulations).


You can find more information about retirement annuities on our unit trust FAQ page.

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