Total investment value
Annualised return
You've just taken the first step towards saving for retirement
A Retirement Annuity (RA) is a special retirement savings account to help you save for retirement.
It is one of the most popular retirement savings vehicles for South Africans because contributions can lower your taxable income and grow tax free while invested, so more money can stay in your pocket for the future.
Invest from as little as R500 per month, or an initial lump sum deposit of R10,000
No account or administration fees
Investment returns grow tax-free while you remain invested
Contributions are tax-deductible
Trust is earned
Why should I choose to invest with Coronation?
Our approach is tried and tested over 30 years.
Coronation is one of the largest and most successful unit trust fund managers in the country. We have over R750 billion in assets under management and our clients are always at the centre of all our decision-making.
Some basic concepts
Retirement annuities are an important tool in the Accumulation phase
Accumulation phase – during this phase investors are building up their retirement capital.
The Decumulation phase is when people reach retirement, and they start using their retirement savings to draw an income.
Unit trusts power your retirement annuity returns
With an RA, you still get to choose an appropriate Coronation fund as your underlying investment, but the RA wrapper comes with both advantages and restrictions.
Contributing to your RA account
When you contribute, two-thirds of every contribution is locked until the retirement age of 55 and the final value must be used to buy a retirement income annuity.
The other one-third can be taken as a cash lump sum at retirement or used to top-up your retirement income. In times of financial hardship, you are also able to withdraw from this pot once a year.
Benefits of having a Coronation RA account
- Flexibility to start, stop, or change your contributions
- No account or administration fees
- Protection from most creditors, and full value goes to beneficiaries on death
- Choice of your preferred underlying Coronation unit trust fund
But there are a few Restrictions
- Most savings are only accessible after age 55
- And at least two-thirds must buy a retirement income at retirement
- Regulation 28* limits equity and offshore exposure to promote diversification
- You cannot borrow against your RA investment
*Regulation 28 sets out asset class limits to protect investors from the effects of poorly diversified investment portfolios. It’s there to protect your savings by ensuring you don’t put too many eggs in one basket. For example, there’s a maximum you can invest in shares, property, or offshore assets. Coronation has a range of funds that are managed within the restrictions of Regulation 28, such as the Capital Plus and Balanced Plus funds.
Funds
What are my fund options?
Coronation has several funds that are managed in line with the Regulation 28 investment restrictions and are suitable as standalone investment choices to power your Retirement Annuity.
Popular choice
Balanced Plus
This fund is our flagship fund for retirement savers. It reflects our core house investment view within the constraints that govern retirement annuities. It invests in a combination of shares, bonds, property, and cash - locally and globally - with a strong focus on growth assets to maximise long-term returns.
- Invests across shares, bonds, property, and cash, locally and globally
- Foreign exposure limited to 45%
- Regulation 28 compliant
Risk rating
Minimum investment term
5 years +
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Click here to see the returns of this fund if you had invested sooner
View fund performance
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Balanced Plus
The fund aims to achieve the best possible investment growth for retirement savers (within the constraints of Regulation 28 of the Pension Funds Act) over the long term.
Investor profile
The fund is suitable for investors: Building up long-term retirement capital. Requiring a moderate capital growth portfolio. Looking to preserve the purchasing power of their capital over the long-term, but not prepared to accept the short-term turbulence of the equity market. With a time horizon of five years or longer.
Benchmark
South African – Multi-asset - High Equity ASISA fund category average (excluding Coronation funds)
Risk rating
Minimum investment term
5 years +
Exposure to growth assets
Maximum: 85%
Annualised past performance (after fees)
| Returns | Fund | CPI + 5% | PEER GROUP AVERAGE |
|---|---|---|---|
| Since Launch (unannualised) | 4,440.2% | 2,015.9% | 2,891.2% |
| Since Launch (annualised) | 13.8% | 10.9% | 12.2% |
| Latest 20 years (annualised) | 12.0% | 10.4% | 9.9% |
| Latest 15 years (annualised) | 11.1% | 10.0% | 9.6% |
| Latest 10 years (annualised) | 9.7% | 9.8% | 8.4% |
| Latest 5 years (annualised) | 15.0% | 9.9% | 12.8% |
| Latest 3 years (annualised) | 18.5% | 9.1% | 15.5% |
| Latest 1 year | 21.5% | 8.1% | 15.1% |
| Year to date | 17.3% | 6.9% | 13.4% |
Capital Plus
This fund is for investors seeking steady, inflation-beating growth with lower volatility. It invests across shares, bonds, property, and cash locally and globally to balance growth and capital protection. It’s a suitable fund option that automatically manages the constraints that govern Retirement Annuities.
- Aims for steady medium- to long-term growth with less volatility than typical balanced funds
- Diversified across shares, bonds, property, and cash, locally and offshore
- Regulation 28 compliant
Risk rating
Minimum investment term
3 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Capital Plus
The fund is in the first instance managed to achieve reasonable investment growth over the medium to long term. Our intent is that the fund should produce an annualised return of at least inflation plus 4% over time. In addition, we aim to achieve less volatility than the average balanced fund. It is specifically managed to suit investors who want to draw an income over an extended period of time.
Investor profile
The fund is suitable for investors: Seeking a risk-conscious investment solution enabling an annual income drawdown over an extended period of time. Requiring a reasonable rate of real return over investment horizons of between 3 and 5 years, achieved at less volatility than that of the average balanced. When your objective is to accumulate capital over the long term, the fund is only suitable if a strong focus on managing downside risk and volatility is a priority. This fund can invest in a wide range of assets, such as shares, bonds, listed property and cash, both in South Africa and internationally, in a manner similar to that usually employed by retirement funds.
Benchmark
CPI + 4% p.a.
Risk rating
Minimum investment term
3 years +
Exposure to growth assets
Maximum: 75%
Annualised past performance (after fees)
| Returns | Fund | CPI | REAL RETURN |
|---|---|---|---|
| Since Launch (unannualised) | 1,302.5% | 267.8% | 1,034.7% |
| Since Launch (annualised) | 11.5% | 5.5% | 6.0% |
| Latest 20 years (annualised) | 10.1% | 5.4% | 4.6% |
| Latest 15 years (annualised) | 9.2% | 5.0% | 4.2% |
| Latest 10 years (annualised) | 8.6% | 4.8% | 3.8% |
| Latest 5 years (annualised) | 13.3% | 4.9% | 8.4% |
| Latest 3 years (annualised) | 17.2% | 4.1% | 13.1% |
| Latest 1 year | 18.8% | 3.1% | 15.7% |
| Year to date | 14.7% | 3.1% | 11.6% |
Learn more about RAs
Explore the features and benefits of a Retirement Annuity in more detail and discover other fund options.
Importance of advice
Financial decisions can be daunting. Getting independent advice can help you achieve your retirement goals.
Contact us
You are welcome to email or call us for more information.