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The retirement plan that rewards you
The Cumulus Echo Retirement Plan is a smart and rewarding way to save for retirement. It’s a tax-efficient retirement annuity that helps to grow your savings, while providing an additional reward when you retire, or your plan comes to an end, in the form of Wealth Bonus. The longer you save and the more you contribute, the greater your Wealth Bonus will be.
Benefits
Why Cumulus Echo could be right for your retirement
Wealth Bonus may be one of the key benefits of the Cumulus Echo Retirement Plan, but there are many other benefits that make for a rewarding retirement solution.
Choose from a range of quality investments
Sanlam has meticulously selected a range of quality investment funds, including Regulation 28 compliant funds, making it easier for you to decide where to invest.
Save as much as your budget allows
The minimum required payment is low enough for you to start saving for retirement today. Once you can afford to save more, you can increase your payment.
Pause payments when your income temporarily decreases
Take a break from payments for up to 12 months at no extra cost, subject to qualifying conditions.
Investment guarantees
Comprehensive and Comprehensive R28 products include the option to invest in an Satrix Smooth Growth Fund, which offers built-in investment guarantees. This fund helps to protect your savings against uncertain times and ensures that your fund’s value won’t fall below a certain level.
Wealth Bonus booster
Earn up to 10% more in tax-free cash through Wealth Bonus if you’re a graduate or professional.
Rewards
Get rewarded with Wealth Bonus
Your Cumulus Echo contribution pays for your retirement and we will contribute an additional amount to Wealth Bonus, with every contribution.
Calculate your retirement needs
Find out how much you need to save to reach your retirement goals.
FAQs
Retirement made simple
- What if I can’t save the recommended amount each month?
The earlier you start saving, the better. if you cannot save the recommended amount, save whatever you can afford. You can also add some of your bonus payments to your retirement annuity.
- What charges apply to the Cumulus Echo Retirement Plan?
The current charges for the Cumulus Echo Retirement Plan: The marketing and administration charge is calculated as a percentage of the fund value. The charge is calculated on a monthly basis and deducted monthly from the fund value by selling units to the value of the charge. This charge is subject to a minimum rand amount that will be increased gradually over 24 months from R0 per month on the start date of the plan to R66.50 per month. This current minimum rand amount will be increased from time to time to allow for inflation. The marketing and administration charge changes as the fund value increases to higher fund value bands. The following marketing and administration charge is applicable for the recurring fund:
4.20% of the plan’s fund value
For the first R500,000
3.75% of the plan’s fund value
for amounts between R500,001 - R1,000,000
3.50% of the plan’s fund value
for amounts above R1,000,000
Investment Management Charges
An asset manager charges fees for investment research and selecting the underlying assets for a specific investment fund. These fees are taken into account in the calculation of the daily unit price of the investment fund. The published performance figures of the investment fund are therefore net of these fees. These fees are fixed or performance-based (PBF). PBF are dependent on the performance of an investment fund in relation to it’s benchmark Two-pot Administrative Charge
Sanlam will levy a monthly two-pot administration charge for the ongoing administration of the various two-pot components and related events specified under the two-pot retirement system legislation. The two-pot administration charge is currently R15.00 per month. This charge will be increased from time to time to allow for inflation. The accumulated monthly two-pot administration charges plus investment return will be refunded in the form of a Two-pot Administration Payback
- What will it cost to make changes to my Cumulus Echo Retirement Plan?
A transaction charge is applicable for each of the changes below. The charge is currently the smaller of R500 and 1% of the fund value.
Reducing or stopping of the recurring payment;
Taking an early retirement benefit;
Terminating the plan.
This transaction charge will not be taken for changes made after the planned retirement date. We will also levy a R500 transaction charge for withdrawals from the savings component before retirement.
- How does Wealth Bonus work?
Wealth Bonus is an amount that will be added to your fund value when you retire, or end the plan. The more payments you make, the higher your Wealth Bonus. Your Wealth Bonus is always a percentage of your fund value. Wealth Bonus percentage depends on the term for which payments have been made. The longer the term, the higher the Wealth Bonus percentage. Wealth Bonus percentages for the Cumulus Echo Retirement Plan are indicated in the following table if you are paying recurring monthly payments:
Year Wealth Bonus 5 7% 10 15% 15 25% 20 35% 25 55% 30 75% 35 95% 40 115%
- How is my Cumulus Echo Retirement Plan fund value calculated?
The total fund value of the plan is equal to the sum of the values of the underlying investment funds. The fund value for each investment fund is equal to the number of units you have in the fund multiplied by the unit price at the calculation date.
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