MONEYWEB
app instead?
Is lending from our retirement savings a good idea?
South Africans are drowning in debt and it is hard to imagine that more debt is the solution to the structural economic issues we face.
14 May 2021 15:20
Image: Shutterstock
The Pension Funds Amendment Bill aims to provide members of retirement funds the ability to use their retirement savings as security for a loan. The bill proposes that members be allowed to borrow up to 75% of their fund values, using their retirement savings as a guarantee of repayment. Current pension fund legislation only allows for retirement fund benefits to be applied for home loans.
South-africa
South-africans
Pension-funds-amendment-bill
Pension-funds-act
ஓய்வூதியம்-நிதி-திருத்தம்-ர-சி-து
ஓய்வூதியம்-நிதி-நாடகம்
MONEYWEB
app instead?
SUBMIT YOUR QUESTION HERE
SHARES
What will happen to my retirement savings if I elect not to buy a life annuity?
In most cases your retirement fund will simply remain invested, in the same structure and format as before.
By Rick Briers-Danks
13 May 2021 00:05
Can you please tell me what will happen to your retirement savings should you turn 55 years of age and you don’t elect or instruct the fund if you want to buy either a living annuity or a life annuity? And what if the fund is being cancelled or is in the process of being cancelled? Where will that deferred pensioners’ money be held? This fund was administered by Absa consultants and actuaries before it was bought by Sanlam life insurance.
Pension-funds
Pension-funds-act
ஓய்வூதியம்-நிதி
ஓய்வூதியம்-நிதி-நாடகம்
Where to invest savings for optimal growth and tax efficiency
By Danine van Zyl
Where to invest for retirement remains the top priority for most investors when they seek professional financial planning advice. The majority select a retirement annuity as the most logical option for their needs. However, this might not always be their best or only option.
Danine van Zyl
Saving for retirement through retirement annuities and preservation funds has always been widely recommended due to the tax benefits available. Investors are entitled to a tax deduction on their contributions of up to 27,5% of their taxable income or remuneration but limited to a maximum of R350 000. Growth on the investment is further free of any capital gains or dividend withholding tax implications – the objective being to encourage investors to save towards their retirement to avoid them from ultimately becoming dependent on government support. Controversial legislation, designed to protect investors,
Brenthurst
Gauteng
South-africa
South-african
Danine-van-zyl
Pension-fund
Pension-funds-act
Share-index
Discretionary-investment
Retirement-annuity
Living-annuity
Income-tax-act
vimarsana © 2020. All Rights Reserved.