The Coronation Living Annuity provides a regular income upon retiring from your retirement fund (including retirement annuity, pension, provident or preservation funds). While no tax is payable on any investment gains earned in the living annuity, any income withdrawn will be taxed according to the normal tax tables.
A suitable investment portfolio can be created from the Coronation range of unit trust funds. The moderate risk Coronation Capital Plus Fund and the lower risk Coronation Balanced Defensive Fund are optimised for retired investors, who need to balance their immediate income needs with the requirement to achieve long term growth.
Living annuity investors are currently not subject to Regulation 28 of the Pension Funds Act, which mean that there are no prescribed investment limitations as in the case of a Retirement Annuity investment. Current law requires a minimum annual income withdrawal of 2.5%, and a maximum of 17.5% of the value of the Living Annuity.
The Coronation Living Annuity is flexible, cost-effective and transparent. It is designed to allow you the flexibility to change your level of post-retirement income annually and/or switch between investment options as your circumstances change, without incurring any penalties. We do not charge initial fees or annual administration fees. The only fees payable are the annual management fees applicable to the underlying unit trust funds selected by the investor.
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You may select from a wide range of Coronation unit trust funds. To simplify the investment decision, we highlight the flagship funds:
- Coronation Strategic Income Fund
- Coronation Balanced Defensive Fund
- Coronation Capital Plus Fund
- Coronation Balanced Plus Fund
We believe these funds are best suited to growing and maintaining retirement benefits over the long term for the majority of investors.