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Invest in a Tax Free Plan which offers flexible payment options and a range of funds to choose from.
Imagine a tax-free investment - one where you get your full return without being taxed on the growth, dividends or interest. An investment that allows you to save for your dreams and goals, gives you access to your money at any time and offers you payment flexibility. Imagine no more - you can have all this with Old Mutual Invest Tax Free Plan.
The Tax Free Plan is a simple and transparent savings solution for your savings needs. All growth in the plan is completely tax free. The Tax Free Plan puts
you in control of your savings and encourages you to save while giving you the peace of mind that you can access your money at any time.
JOE'S TAX FREE PLAN IS MAKING HIM SMILE
Joe can't stop smiling! Do you want to know why? He's invested in the Old Mutual Invest Tax Free Plan. With benefits such as choosing how to invest, accessing money when you need it penalty-free,
no fixed terms and wide choice of funds who wouldn't be smiling? PLUS Joe's investment growth is tax free!
WATCH THE VIDEO
All this talk about paying tax and investing tax free can be confusing. To help you understand a bit better we've created a fun educational video that explains the tax we pay on a daily basis and how a tax free plan works. There's also an entertaining Spending Frenzy game that shows you the tax you could be paying on the simple things in life!
JOE DISCOVERS HOW TO SAVE FOR THINGS HE REALLY WANTS
Joe's back! He has just realised that more than 35% of every Rand he earns goes to direct tax and around 25% to indirect tax. After all the deductions he doesn't have much left over to save for the things he really wants! Joe wonders how he'll ever get round to those home renovations. Watch how he solves this problem.
PLAY THE GAME AND FIND OUT HOW TAX AFFECTS YOUR LIFE
Did you know that you pay tax every day? Tax on fuel, tax on groceries, even tax on some of the good things in life! Take a quick break and have a bit of fun with the Spending Frenzy game. It will show you just how much tax you could be paying for the simpler things in life. To play, drag through three or more adjoining matching circles (in any direction). You're working against the clock so be sharp!
PLAY THE GAME
The Old Mutual Invest Tax Free Plan is a new way of saving which means there are all sorts of questions on how it works and how to invest. To help you get to grips with the product we've listed a few categories of questions below. If there is something you need to ask which isn't covered by one of the questions and answers please give our Customer Service Centre a call on 0860 50 60 70.
Yes, you can transfer your Tax Free Savings from one provider to another. Read here for more information.
You can choose whether you want to pay regularly or make ad hoc lump sum investments into your Tax Free Plan.
* If you invest less than R350 per month, you will not be able to add a lump sum to your plan when applying. You will however be able to add a lump sum once your plan has been issued.
You do not have to commit to a specific investment term for your regular investments. You can choose for how long you want to make payments into your plan, and how long you want to keep your
money invested. Keep in mind that the longer your money is invested, the more you will benefit from tax-free growth.
The government has set up regulations that limit you to investing a maximum of R33 000 per tax year* and R500 000 over your lifetime in any tax free products. If you set up regular investments, the
R33 000 per tax year maximum means you can invest up to R2 750 per month, if you pay for 12 months. These limits are expected to be reviewed from time to time by the government.
Old Mutual will not accept more than R33 000 per tax year to be invested into your Tax Free Plan. However, you are able to invest any excess money you have in other investment plans. You can
make this arrangement through a financial adviser.
If you have more than one tax free savings product (for example one with Old Mutual and one with another service provider), then the maximum limits will apply across all your tax free savings
products, not per product.
The South African Revenue Services (SARS) will levy a tax of 40% on all contributions that exceed R33 000 per tax year.
*Remember the tax year is from the beginning of March to the end of February the following year.
Even though there are limits as to how much you can invest into a tax free plan, there are no limits on the growth of your investment.
Invest with the help of a financial adviser:
You can also invest directly online. Watch our How to Apply Online video tutorial for assistance.
All natural individuals with a valid South African identification and who can afford to make the investment payments.
Yes, any parent or legal guardian (appointed by the Court) can open a Tax Free Plan for minors who have a valid South African identification with an identity number (for example birth certificate). In such instances, the minor is the
contracting party and the life covered, while the parent can be the payer. This means the payments can come from the parent’s bank account, and can be subject to donations tax.
Any disinvestments made from the minor's Tax Free Plan can only be paid into the bank account of the contracting party, in this case the minor's bank account.
As the parent/legal guardian, you do not own the Plan, the minor does. You will be able to make changes to the Plan until the minor reaches the age of 18.
You will be requested to provide proof of identification (e.g. South African ID document/card or passport) and proof of residence (e.g. utility bill) when applying for regular investments which equal R25 000 or more per year, or lump sum investments in excess of R50 000.
When you are a parent applying on behalf of a minor, you will also need to provide proof of identity of the minor (an abridged birth certificate if your surname corresponds with that of the minor or unabridged otherwise).
If you are a legal guardian of the minor, you will need to provide proof of identity of the minor as well as a copy of the Court order confirming that you have been appointed as the legal guardian.
Stop order (this option is only available if you apply via a financial adviser):
Lump sum investments
Old Mutual can raise a once-off debit order from your bank account. You can specify the day of the month the debit order must be lodged.
If you apply for the Tax Free Plan through a financial adviser, you can also make a deposit in the following Old Mutual Invest
Name of Bank: Standard Bank Account holder: Old Mutual Life Account Branch: Cape Town Branch code: 020009 Account number: 07-024-4162 Account type: Current Payment reference: Please use the proposal number of your plan or your identity number as a reference (use the minor's identity number if you are applying for the plan on behalf of a minor).
Yes, you can increase, decrease, stop or restart your regular investments at any time. There are no penalties for making these changes but a minimum administration charge will apply if you do not have a regular investment set up on any of your Old Mutual Invest Plans.
Yes, the due date of regular investments may be changed to any date for debit order payments.
Due date changes can only be made three or more working days before the next payment is deducted (as a result of the debit order lead time required by the bank).
You can select an yearly increase percentage (between 1% and 99%) and your regular investment will increase each year by this percentage. You can also select your increase to be in line with
inflation (CPI) each year.
If your regular payment is less than R350, we will default your yearly increase percentage to be in line with inflation each year.
If you have selected a yearly increase, the default date will be the anniversary date of the plan each year.
The chosen yearly increase date can be changed at any time before the next annual premium increase takes place (allowance needs to be made for debit order and stop order lead times –
usually three working days for debit orders and two months for stop orders before the next regular investment’s due date).
You can add a lump sum investment by:
The South African Revenue Services (SARS) will levy a tax of 40% on all contributions that exceed R33 000 per tax year. You should therefore monitor the contributions you make to all your tax-free
investments to ensure you do not exceed the limits imposed by the government.
We will monitor your contributions to assist you in not exceeding the annual allowance. If at any point we identify that your investment will cause you to exceed the allowance, we will reduce your investment amount or pause your regular investments until the next tax year (when you will receive a new allowance).
You choose the underlying investment funds, where your money is invested in, to meet your specific investment strategy. Along with funds managed by Old Mutual, our selected range also includes
funds managed by other leading fund managers including Nedgroup Investments, Coronation, Prudential and Investec. These funds are referred to as ‘external funds’.
These external funds are only available if you apply for the plan through a financial adviser. The minimum regular investment for these external funds is R1 000 per month and the minimum lump sum
amount is R5 000. If you have a regular investment set up, this lump sum minimum reduces to R1000.
If you invest regular investments of less than R350 per month, your contributions will be invested into the Old Mutual Moderate Balanced Fund.
View the full fund list.
Yes, you can split your investment amount into a number of funds. The minimum amount that can be invested in each fund is R100.
If you invest with regular investments of less than R350 per month, your investment will be invested in the Old Mutual Moderate Balanced Fund only.
Yes, you can switch investment funds as often as you like - at no cost.
There are no charges to switch your underlying investment funds.
To switch your underlying investment funds, you will need to indicate either the amount or percentage of each fund you want to switch, select the investment fund(s) you’re switching from
and the investment fund(s) you’re switching to. You can do this by logging on to MyPortfolio or by speaking to
your financial adviser.
An administration charge of 0.75% per year of your fund value will be charged. This will be deducted at the end of every month. If you do not have a regular investment set up on any of your Old Mutual Invest Plans, or if your regular investment is cancelled, the administration charge will be a minimum of R20.00 per month. The administration charge can be reduced with our Investment Maximisers.
Asset management fees are deducted by the fund managers of the underlying investment funds which you choose. The amount of the asset management fees will depend on the funds you choose.
If your regular investment is less than R350, an investment charge of 5% will apply to each regular investment.
Yes, Old Mutual Invest Tax Free Plan also offers you Investment Maximisers.
Investment Maximisers can help you make the most of the growth on your investment in two ways:
A. Reduction in administration charges
When you choose underlying funds managed by Old Mutual, we will reduce your administration charge on those funds from 0.75% per year to 0.50% per year.
B. Refund of administration charges
At the end of each tax year, we check whether you have invested at least R30 000 in that tax year, across your Old Mutual Invest Plans. If you have, we will refund up to half of the administration charge that you paid during that tax year. The refund will be paid proportionately into the underlying investment funds in your Plan.
No transactional charges will apply if you decide to:
A transaction charge may apply if you transfer your plan to another provider.
There are three types of advice fees which may be payable to your adviser. You can negotiate each of these with your adviser. Adviser fees could be a combination of the following:
All adviser fees are paid by you to your adviser. Old Mutual facilitates the payment to the adviser on your behalf.
Initial financial advice: A financial planning fee is payable to your adviser for the initial financial advice given on choosing this plan and the appropriate underlying investment funds.
This fee is only paid if you have a regular investment set up on your plan.
Ongoing financial advice: Your adviser provides you with ongoing advice on the continued suitability of the chosen investment funds and the product in general. You can choose to
pay for this
advice in the form of one or a combination of:
The financial planning fee can be paid in one of two ways:
1. Paid from your first regular investment - You can choose to pay the financial planning fee as a once-off amount upfront, funded by your first regular investment. In this scenario,
the financial planning fee is deducted from your first regular investment, and the net amount is invested into your chosen investment funds.
2. Paid as a monthly charge - You can choose to pay the financial planning fee as a monthly charge which is paid until the full financial planning fee has been paid off.
In this scenario, your first full regular investment will be invested.
The monthly charge will be calculated as an annual charge of 0.6% of the fund value, which will be payable monthly. This charge will be payable every month until the financial planning fee has been
The as-and-when advice fee is payable to your adviser as, and when, each investment is made. The amount invested will be net of the as-and-when advice fee, if applicable.
The ongoing advice fee is calculated as a percentage of the fund value and is paid at the end of every month by disinvesting units from your underlying investment funds.
Yes, you can change both the amount and the recipients of advice fees at any time. The change will apply to future payments. Payments that have already been made cannot be reversed.
Yes, you can disinvest money from your plan at any time. You can also set up regular
disinvestments if you regularly want money to be paid out to you from your plan. Bear in mind that any money disinvested does not get deducted from your annual allowance. This means that if you have paid R33000 in a tax year and disinvest R10 000, you will not be allowed to reinvest that R10 000 until the following tax year.
There are no disinvestment charges.
We will pay the money within seven business days after receiving your disinvestment instruction.
Amounts that you have paid but that have not yet been cleared by our bank account, may be held back until they have been cleared.
When you take out a Tax Free Plan you have the option to nominate one or more beneficiaries on your plan. In the event of your death, the proceeds of your plan will be paid to these beneficiaries
according to the shares you have allocated to each. This means you save on executor fees and your beneficiaries receive the proceeds quicker.
If no beneficiaries have been nominated, the proceeds of your Tax Free Plan will be paid to your estate and form part of the estate for the purposes of executor fees and estate duty.
The proceeds from your Tax Free Plan will be included in the calculation estate duty in case of your death (regardless of whether you have nominated beneficiaries or not).
Yes, you can change your beneficiaries and the percentage you allocate to each of them at any time after you have nominated them.
No, the proceeds of your Tax Free Plan will be paid out to your beneficiaries. The plan comes to an end at your death.
Yes, after your application has been received and accepted, you can request to cancel the plan within 30 days. This is referred to as a “cool-off”. You will receive the total amount of
investments made by you, less any market loss (if applicable).
Once we have received and accepted your application, we will send you a contract pack detailing your Tax Free Plan. Thereafter, we will send you a statement every year.
You can also view and manage your investment information online via MyPortfolio which is a convenient online service
from Old Mutual.
MyPortfolio allows you to manage aspects of your entire Old Mutual portfolio online at any time. Log on at MyPortfolio
to find valuable information on
your investments, update your personal details or request changes.
If you have any questions about your investment, please email us on email us or call our Customer Service Centre on 0860 50 60
70 between 08:00 and 18:00, Monday to Friday (or
phone +27 21 509 2765 if you are calling from outside South Africa).
If you are looking for financial advice and are currently not in contact with a financial adviser, please call 0860 60 60 60 or email us.
0860 60 60 60
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