- Retire on your own terms
- How it works
- FAQs
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Retire on your own terms
The Sanlam New Life Retirement Annuity gives you a plan that's easy to understand, with a guarantee on what you get back.
Contribute between R300 and R2,000 a month, and Sanlam invests it on your behalf, with no need to choose or manage funds yourself. The plan guarantees at least your contributions back, less fees, whether you retire, pass away, or transfer your fund elsewhere.
Like all retirement annuities, your contributions are tax-deductible up to certain limits, and this plan follows South Africa's two-pot retirement rules.
Note: this guarantee does not apply if you stop paying, or reduce your contributions.
how it works
How the retirement annuity works
This retirement annuity is for individuals, designed to give you a sum of money at retirement. You don't need an employer, and there's no employment relationship involved, so it's entirely in your hands.
Retirement planning phases
- ContributingEach month, you pay between R300 and R2,000 into the plan. Contributions are invested in the New Life Retirement Annuity Fund, which is managed by Sanlam Investment Management.
- The two-pot splitEvery contribution is divided as it's invested. One third goes into a savings pot you can access before retirement. Two thirds go into a retirement pot that stays invested until you retire.
- At retirementFrom age 55, you can retire from this plan. At that point, a separate split applies to your full retirement benefit: up to one third can be taken as a cash lump sum, and the rest must be used to buy a living annuity that pays a monthly income.
- Optional protectionChoose the No More Premiums Benefit, and if you become disabled before age 60, Sanlam pays your contributions for you so your plan keeps growing.
benefits
Key benefits
This plan is built to keep things simple. Here's what you get for your contribution
How to apply for a withdrawal
- Contribution guaranteeGet back at least what you paid in, less policy fees and any No More Premiums Benefit charges, as long as you don't stop or reduce your contributions.
- Inflation protectorChoose a 5% or 10% annual increase on your contribution, to help your plan keep pace with inflation.
- Two-pot compliantPart of your savings sits in a savings pot you can access before retirement. Withdrawals are taxed at your marginal rate and limited to one per tax year.
- Tax-deductibleYour contributions qualify for a tax deduction, up to certain limits.
- Transfer flexibilityMove your plan to another retirement annuity fund at any time, in part or in full, with no tax payable.
- Disability cover, if you choose itThe No More Premiums Benefit keeps your plan growing if you become unable to work.
faqs
Your questions answered
At what age can I join the plan?
Any age from 18 - 55.What if I want to contribute more than R2,000 a month?
This plan is designed for contributions between R300 and R2,000 a month. To save more, speak to a Sanlam adviser about the Sanlam Retirement Plan, which has no stated contribution cap.What happens if I'm unable to work due to disability?
If you've chosen the No More Premiums Benefit and become disabled before age 60, Sanlam covers your contributions so your plan keeps growing without you having to pay in.
What am I guaranteed to get back from this plan?
At least the total of what you've contributed, less policy fees and any charges for the No More Premiums Benefit – Disability, if you've chosen it. This applies when you retire, pass away, or transfer your fund, as long as you haven't stopped or reduced your contributions.Can I cancel the retirement annuity and take the full value?
You can only surrender your plan if your fund value is below the prescribed minimum amount, or if you're over 55.
Let us help you make the right choice
Speak to your financial adviser or visit one of our Client Care offices.
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