Who should consider using a retirement annuity?

It’s never too early or too late to start saving for your retirement. A great way to do so is with a retirement annuity.

Retirement annuities are appropriate for:

• Self-employed people
• Employees in organizations that do not provide a pension or provident fund
• Employees who earn a significant amount of passive taxable investment income (from interest, rent, annuities etc,) and wish to increase their retirement savings
• Employees who wish to claim retirement fund contributions at the maximum permitted rate or amount (27,5% of gross remuneration or taxable income, subject to an annual cap of R350,000) but are not permitted to make additional voluntary contributions at their workplace pension or provident fund

Retirement annuities can also be used to house the proceeds of your pension or provident fund when terminating your employment.