R25 000 lump sum
R5 000 per additional contribution

You must remain invested until you are at least 55 years old.

You can move your preserved retirement savings to another preservation fund, retirement annuity or employer’s fund without any penalties

You have the freedom to switch between investment funds as your needs change. You can make four switches free of charge per plan year.

You can choose from a wide range of leading investment funds carefully selected by Sanlam.

With the Lifetime Investment Option, your savings are managed by leading asset managers at very low cost, offering you peace of mind for the duration of the investment

• You receive an amount, called the Wealth Bonus, when you retire or terminate the policy. The longer you invest, the bigger the Wealth Bonus

• You choose your retirement age (minimum age 55 years)
• The one-off payment is transferred from your existing pension- or provident fund
• We invest the money in the underlying investments that you choose with the help of your Sanlam financial adviser or accredited broker
• Your money can grow over time based on your underlying investments.
  The longer you remain invested, the higher the Wealth Bonus will be

When you retire, the Wealth Bonus will be added to your retirement savings. You will be allowed to take a portion of your savings as a lump sum. The remainder must be used to purchase an income-generating product (compulsory annuity) such as Investment-linked Living Annuity, our Investment-linked Lifetime Income Plan or a Life Annuity.
These aim to provide you with an income for the duration of your retirement.

Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. Read more about the Two-Pot System here. In summary, the retirement savings in your preservation fund are divided into 3 components, and each component gets treated differently at retirement:

• Vested component:
  Provident Preservation Fund:
  
  Benefits in the vested rights portion* of this component will be available as a lump sum (subject to taxation), as an annuity, or as a combination.
  
  Benefits in the non-vested rights portion* are subject to the purchase of a compulsory annuity (to provide you with an income during retirement) with at least two-thirds of the value.
  
  Pension Preservation Fund:
  
  All benefits in the vested component are subject to the purchase of a compulsory annuity with at least two-thirds of the value. If the investment is funded by a provident/provident preservation fund, however, it may consist of a vested and non-vested rights portion.
  
  *Members who were previously members of a provident fund, may have both a vested and non-vested rights portion inside their vested component
• Retirement component: All benefits must be used to purchase a compulsory annuity to provide you with an income during retirement.
• Savings component: You can take the full amount as a lump sum, or use it to purchase a compulsory annuity.

If the full value of the retirement component + two-thirds of the non-vested rights portion in the vested component is equal to or less than R165 000, the full value of the retirement component and the non-vested rights portion of the vested component may be taken as a taxable cash lump sum.

Trustees will take into account your wishes and all your dependants’ needs when you die to decide who receives this benefit.

If you are permanently disabled before you retire, your benefit is paid out to you in the same way as if you had reached retirement (aged 55).

• Vested component:
  You are allowed to make one withdrawal before retirement. Access is also possible in the case of emigration (three years cessation of tax residency), disability or death.
• Retirement component: No access at all, except in the case of emigration (three years cessation of tax residency), disability or death, subject to the applicable fund rules.
• Savings component: You can make one withdrawal per tax year, subject to taxation in terms of the individual income tax table. The value of the withdrawal must be at least R2 000 before costs, but there is no maximum withdrawal value.

• Tax benefits
  • At retirement there is no tax on the amount transferred to a post-retirement product that provides you with an income during your retirement
  • You don’t pay tax on any interest or dividends
  • No CGT is applicable
• What is taxable?
  • There is tax on any portion of your retirement savings that you withdraw in cash when you retire
  • There is tax on any withdrawal benefit

Fees vary per product and your underlying investment. Please speak to your financial planner to make sure you understand which fees you pay and why.