Structure your retirement benefit into a market-linked income for life, investing directly into your choice of underlying investment options or phasing in your capital monthly in your choice of installments.
Features and Benefits
- Investment minimum is R100 000.
- You may select a maximum of ten unit trust funds.
- Access to a range of leading asset managers.
- Invest directly into your choice of underlying investment options or phasing in your capital monthly via the Call Account over three, six, nine or twelve monthly instalments.
- You may switch between funds, subject to the terms and conditions of the funds available at the time, according to your changing investment needs.
- You may select an annual income rate of between 2.5% and 17.5% of the portfolio's total asset value.
- The income rate is reviewable annually on the investment anniversary date.
- Income may be paid monthly in arrears or, quarterly, half yearly or yearly in advance.
- You can opt to allocate a portion of the capital to a Cash Management Account, from which income may be drawn. Alternatively you may withdraw income from across your underlying investments.
- Your benefit is currently protected in the event of your insolvency.
- Your investment does not form part of your deceased estate, provided no lump sum is taken.
- You may nominate beneficiaries.
- Your contract may not be ceded or pledged as security.
- The proceeds of certain retirement funds may require you to comply with the regulations of the Pension Funds Act which stipulate that no more than 75% of your capital may be invested in equities.
- This investment is for life. Upon death, the remaining benefit may be paid to your beneficiaries as an annuity over five years or longer, or as a lump sum (if your investment originated from a pension or provident fund).
- Income derived from this annuity is taxed at your marginal tax rate. The asset portfolio is currently untaxed and capital accumulates free of tax within the investment.
- This is a compulsory purchase annuity which means it is bought with the proceeds of a retirement fund.
For more information on Fairbairn Capital Retirement Income Plan, please visit the Fairbairn Capital website.