Retirement Annuity

Build-up your retirement capital

The Coronation Retirement Annuity Fund is a personal retirement plan which enables you to save tax-efficiently for retirement. It is an ideal way to supplement your existing pension or provident fund if you are currently employed and earn non-retirement* funding income; or build a retirement nest egg if you are self-employed. You can make lump sum or regular monthly contributions to build up capital that will benefit you in retirement.

The Coronation Retirement Annuity Fund is flexible, cost-effective and transparent. It is designed to allow you to stop and restart your contributions 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.  

The underlying investment options are Coronation’s range of top-performing unit trusts.  The higher risk Coronation Balanced Plus Fund represents our best investment view for retirement savers with a longer time horizon, while the more conservative Capital Plus and Balanced Defensive funds are more appropriate for investors approaching their retirement date.

*Non-retirement funding income is generally irregular and variable income such as commission, performance bonuses and other windfalls which are not used to calculate individual or company contributions to a pension or provident fund.

RETIREMENT ANNUITY ADVANTAGESRETIREMENT ANNUITY LIMITATIONS
  • Flexible to change in needs
  • Tax efficient: tax deductable contributions, tax free build-up, including exemption from dividends tax
  • Unit trusts are the underlying investment structure
  • No initial fees, exit penalties or admin fees
  • Contributions are protected from most creditors.
  • You can only access your investment at the age of 55
  • Needs to comply with Regulation 28, currently limiting equity exposure to 75% and international exposure to 25% of the value of the investment.
  • At least two thirds of proceeds at retirement must be used to buy an income.
  • Post-retirement lump sum and income payments are taxable (although you may qualify for lump sum tax concessions and benefit from a lower average tax rate).


INVESTMENT OPTIONS

You may select from a wide range of Coronation unit trust funds. To simplify the investment decision, we highlight the flagship funds:

We believe these funds are best suited to growing and maintaining retirement benefits over the long term for the majority of investors. When selecting the underlying unit trust funds please ensure that the combination complies with Regulation 28 of the Pension Funds Act.

Minimum Investment AmountLUMP SUMR10 000
RECURRINGR500 per month
ADDITIONALR5 000

REGULATION 28 COMPLIANCE

The Coronation Retirement Annuity Fund is required to comply with Regulation 28 of the Pension Funds Act and Exchange Control legislation. Accordingly, the fund requires that your investment complies with the following limits: a maximum exposure of 75% of the investment amount to equity investments; 25% to international investments; 25% to property.

Investing in the Balanced Plus Fund is the simplest way to achieve that using Coronation’s best investment views. Alternatively you may select from a wide range of Coronation unit trust funds and use our online calculator to ensure that you chose a combination of investment options that complies with these limits."

Coronation Client Services monitor compliance with these limits at the time of your initial investment and on each transaction thereafte.