Destiny Retirement Annuity
Retirement annuities help protect you from the risk of outliving your income by getting you to save consistently. Ultimately your retirement destiny is not a matter of chances; it’s a matter of choice. A retirement annuity (RA) is a retirement fund in terms of the Pension Funds Act. It is a tax effective investment vehicle designed for individual investors as opposed to employees who contribute to a workplace retirement fund.
Why an RA?
A great way to save if you don’t have a company pension fund or are self employed
You wish to save more for your retirement
Tax-saving Protection against premature cashouts
The Destiny Advantage
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
Your contribution to the retirement annuity is tax deductible (up to a prescribed maximum).
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.
Our laws stipulate that you may only cash in your retirement annuity at retirement. However, Destiny offers you the flexibility to switch between the Portfolios at any time, if you have not selected the Destiny LifeStage Model. If you change jobs, you will also be able to stop and start contributions or transfer your investment to any other approved retirement annuity fund - without any penalties.
Destiny subscribes to a 100% transparency policy. All our fees are fully disclosed and are available for public review at any time.
The Destiny Retirement Annuity Fund will be a sensible choice if:
You are self-employed and you are not a member of any pension or provident fund
Your employer is not contributing to a pension or provident fund on your behalf
You receive regular payments that are subject to change, but your contributions to a pension or provident fund are not calculated accordingly
You wish to save more for your retirement
You wish to save for your retirement in the most tax-efficient manner possible
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.
he 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.
You are allowed the greater of the following tax deductions:
You may deduct up to 27.50% of your gross remuneration or taxable income (whichever is the higher) in respect of your total contributions to a pension, provident or retirement annuity fund, subject to an overall annual limit of R350,000.
What are the other tax implications?
Investment returns are tax free – there is no income tax or capital gains tax on the investment return earned in a Retirement Annuity.
At retirement, you will not have to pay tax on the portion of the Destiny Retirement Annuity Fund that is transferred to a retirement investment vehicle such as a living annuity. Income from an annuity is taxed at the annuitant’s marginal tax rate.
The cash portion at retirement is taxed.
You may transfer your benefits in another retirement annuity fund to our retirement annuity fund.
You may also transfer your benefits in our retirement annuity fund to another retirement annuity fund.
These transfers are subject to the requirements of the receiving and the transferring retirement annuity funds as well as legislation at the time.