Destiny’s Preservation Funds enable employees who resign from an organisation to reinvest and preserve the funds that they have accumulated in a pension or provident fund in a money smart and tax-effective manner.
Preserve the fruits of your labour
When you change retirement policies, usually because you change jobs, the Destiny Preservation Fund safeguards what you've saved so far and reinvests it using our unique blended investment strategy.
While you go from strength to strength in your career, we make sure your investment keeps up.
Blended Strategy
Our investment strategy is to maximise the allocation of investment receipts towards retirement funding investments, and to objectively select and manage asset manager allocations on our members' behalf so as to maximise investment returns at an appropriate level of risk.
Destiny uses traditional (active) asset managers but still manages to reduce costs and increase efficiency by using passive management. This is achieved by blending active and passive management in an innovative matrix.
Frequently Asked Questions
Transparent fees:
Our fee structure is market-related, 100% transparent and available for public review at any time.
Freedom of choice:
You may opt to utilise our Destiny LifeStage Model that automatically adjusts the type of investment as your life stage changes or you could choose from the Destiny Investment Options that are most suited to your risk profile.
You can make one withdrawal from the fund:
Subject to the requirements of the transferring fund and/or legislation/the regulatory authorities, you may make one withdrawal before retirement.
The Destiny Preservation Fund would be a sensible choice for you if there is a change in your employment and you wish to preserve the retirement benefits that you have accumulated at your current employer.
If you are a member of an employer retirement fund or preservation fund you can transfer from that fund to a Destiny Preservation Fund. Transfers are subject to legislation and the rules of the transferring fund.
Select your advice fee structure
The direct model is preferred as the Funds are marketed directly in order to minimize your costs. This generates enhanced investments at retirement for you.
The Destiny LifeStage Model is designed in such a way that it provides a solution for members without the need to make difficult investment decisions and therefore reduces the need for advice.
The Board of Trustees is aware that many investors require the services of a Financial Adviser. These services would be at an agreed fee between you and the adviser. Please contact us in order to arrange for an accredited adviser to assist you.
No Initial administration fee
No initial fee is charged when investing in the Destiny Preservation Fund. This ensures that 100% of your initial investment is allocated to your selected investment portfolio. If however you should exit before age 55 then Destiny has the right to charge a fully pre-disclosed fee.
Withdrawal (before retirement)
The Destiny Preservation Funds allow for a single partial or full withdrawal of your value in the Fund prior to retirement, subject to the relevant requirements of legislation and the regulatory authorities.
Retirement (after age 55) or Permanent disability prior to retirement (this must be approved by the trustees)
PRESERVATION PENSION FUND
A maximum of one-third of your value can be taken as cash. The remainder of the benefit must be used to purchase a pension-providing vehicle such as the Destiny Living Annuity. If the value is equal to or below R247 500 across all your Destiny Preservation Pension Fund investment accounts, the entire value can be taken as cash.A maximum of one-third of your value can be taken as cash. The remainder of the benefit must be used to purchase a pension-providing vehicle such as the Destiny Living Annuity. If the value is equal to or below R247 500 across all your Destiny Preservation Pension Fund investment accounts, the entire value can be taken as cash.
PRESERVATION PROVIDENT FUND
The total of your value can be taken as cash. If only part is taken in cash, the remainder of the benefit must be used to purchase a pension-providing vehicle such as the Destiny Living Annuity.The total of your value can be taken as cash. If only part is taken in cash, the remainder of the benefit must be used to purchase a pension-providing vehicle such as the Destiny Living Annuity.
Death prior to retirement
When a member dies, the dependants/nominees can choose to receive the death benefit as an annuity or a lump sum payment. If no dependants are found and no beneficiaries were nominated, the death benefit will be paid to the deceased member`s estate as a lump sum.