Retirement Annuities

Indequity Capital Managers offers Retirement products with the following objectives in mind:

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To give individual investors who want to save for retirement or who want an annuity after retirement access to our investment management skills.

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To provide products which represent excellent value for money. We only earn a fee on investment management and do not earn any other income from these products.

Contributions are tax deductible subject to a maximum of

At retirement, accumulated capital in the retirement annuity taken as cash will be taxed based on a simplified sliding scale:

At least two thirds of the capital must be invested in a pension-providing vehicle such as a living annuity or a guaranteed life annuity. No tax is payable on the transfer into the living annuity. The annual pension received after retirement is taxed at your marginal tax rate. Your marginal tax rate after retirement is typically lower than your marginal tax rate before retirement.

The capital in a retirement annuity cannot be withdrawn prior to retirement.

(The above amounts and rates are based on the 2011 / 2012 tax year.)

- At retirement a living annuity is purchased with the pension benefits originating from your pension, provident, preservation or retirement annuity fund.

- The money in your living annuity can be invested in one or a combination of unit trust funds.

- A living annuity provides you with a regular income, which is funded by growth on capital and income from interest and dividends.

- Legislation requires that you withdraw between 2.5% and 17.5% annually of the capital in your living annuity.