Retirement annuities and plans

It's for you if you want to invest regularly towards your retirement (say monthly or yearly) and grow your money while benefiting from tax incentives. You can also add once-off amounts. You can save extra in a retirement annuity if you have a pension fund at work. If you don't contribute to a pension fund, it's a great way of making provision for your retirement in a tax-efficient way. South African citizens or persons with valid work permits may invest.

1. R500 minimum when you invest in Momentum funds.
   
2. R750 minimum when you invest in one or more non-Momentum funds.
   
3. R150 if you already have another Investo contract.

They are great. For example: If you contribute R1 000 a year, you will get R360 back from the tax man if your marginal tax rate is 36%. It “costs” you only R640 to invest R1 000.

You can invest up to 27,5% of your taxable income or remuneration, whichever is higher. You can do this whether you are self-employed or earning a salary but not yet contributing the full amount to your employer’s pension fund. The maximum tax deduction you can claim in a tax year is R350 000, a limit that applies only when you are earning more than R1,27 million a year.

Creditors may not touch your retirement savings while your contract stays intact. But once the contract pays out, the money is not protected.