What is the Old Mutual Max Investments Optimal Retirement Plan?
Just because life is unpredictable, doesn't mean your golden years shouldn't glow.
- Your contributions are tax-deductible up to a certain amount
- Pay no tax on the growth of your money
- Access a range of fund options to meet your needs
- Opt for premium protection which ensures your premiums continue to get paid in the event you become disabled.
- Withdraw a portion of your retirement savings before retirement for emergencies once a tax year (subject to fees and tax)
- Stay invested and enjoy Investment Boosters along the way. If, for example*, you invest R1 000 per month, over 25 years you could earn over R300 000 more with an Investment Booster compared to not having the booster.
*Assumption: R1 000pm, increasing at 5% p.a, with a term of 25 years, and an investment strategy of CPI + 4%-5%. Terms and Conditions apply.
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- How much you would like to have when you retire
- How much you can afford to invest
- How many years until you retire
- Your contributions are tax-deductible (up to a certain limit)
- With most retirement annuities you can choose which funds you would like to invest in
- If you die, your benefits will not be tied up in your estate but allocated to your dependants as determined by the trustees of the retirement fund
- You don’t pay any tax on the growth of the retirement savings
- You may withdraw a portion of your retirement savings before retirement for emergencies once a tax year (subject to fees and tax)
- You can use the full amounts in the savings, retirement and vested components (if applicable) to buy an income annuity (life or living annuity) to provide you with a regular income during retirement.
- You can take a portion or the full amount in your savings component as a cash lump sum (subject to fees and tax).
- You can take up to a third of the vested component (if applicable) as a cash lump sum but you have to use the rest to buy an income annuity.
- The full amount in your retirement component must be used to buy an income annuity. If the amount in your vested component (if applicable) that must be annuitised (two thirds) plus the amount in the retirement component (full amount) is less than R165 000, you can take the full amount as a cash lump sum. This needs to be aggregated across all your investments in each retirement fund including amounts previously commuted.
- Investment term 21 -25: R500 per month
- Investment term 10-20 term: R650 per month
- Investment term 5-9 term: R2000 per month
- Investment term 21 -25: R650 per month
- Investment term 10-20 term: R900 per month
- Investment term 5-9 term: R2000 per month
A retirement annuity is a long term investment that aims to help you provide for your retirement years. This investment takes the form of a policy with a product supplier (company) like Old Mutual. Typical retirement annuities require a monthly investment amount but there are a few that accept lump sums only, or both.
The monthly amount is calculated based on your retirement goals which include:
The figure can be calculated with the help of your financial adviser or by using our retirement calculator.
Unlike a company pension fund you are the only one contributing to the retirement annuity. Changing jobs will make no difference to your retirement annuity, as it’s independent of your employer.
Benefits of a retirement annuity include:
A financial adviser is the person best positioned to help you calculate this amount. They look at your whole financial portfolio and assist with calculating how much you need when you retire which helps you assess how much you should be saving. If you would like an estimate, then try our retirement savings calculator. Remember to be realistic about how much you'll need when you retire. Some expenses might decrease (your home may be fully paid up so no mortgage repayments) while other expenses, such as healthcare, are likely to increase due to failing health the older we get.
Need advice? Why not connect with one of our friendly and professional financial advisers?
A pension fund is a retirement fund that receives frequent contributions (usually monthly) from you and your employer. A pension fund is chosen by your employer.
You have to stay "in" the pension fund while working at the company. If you leave the company before retirement age then you exit the pension fund too. The company will pay out the money you have accrued. You can reinvest the money from your pension fund into your new employer's pension or provident fund, your own retirement annuity or a preservation fund (where it will grow until you retire).
A retirement annuity is a long-term investment designed to help you save for your retirement. Only you contribute to a retirement annuity, not your employer. Your contributions are tax deductible within certain limits. Changing jobs will make no difference to your retirement annuity, as it’s independent of your employer.
You can’t access the bulk of your retirement annuity before age 55. New legislation allows you to withdraw a portion of your retirement savings before you retire in case of a real financial emergency (subject to taxes and fees). This will, however, have a significant impact on the lump sum that you may take when you retire, and on the retirement portion, from which you will receive an income when you retire. Talk to a financial adviser before you make any decision to withdraw from your retirement savings.
When you retire, at age 55 or older, you have the following options:
The decision you make at retirement is arguably one of the most important decisions you will ever make. Old Mutual has a variety of income options that you can choose from, which allow you to select the most appropriate solution for your needs. A life or living annuity will provide you with an income once you retire. Speak to your financial adviser to help you understand your options.
A retirement annuity is the investment vehicle you use to save for your retirement. The retirement savings accumulated at retirement are then used to buy an income annuity (a life or living annuity, or a combination of the two) that pays you a regular income.
Selected investment term: minimum 5 years and maximum 25 years
Contributions
Internal Funds:
External Funds:
No lump sum nor transfer-in allowed.