The current charges for the Sanlam Retirement Annuity:

Marketing and administration charge

The charge is calculated on a monthly basis, which means the percentage is divided by 12 to calculate the monthly amount. This charge is subject to a minimum rand amount that will be increased gradually over 24 months from R0 per month on the start date of the plan to R54.00 per month. This current minimum rand amount will be increased from time to time to allow for inflation.

The marketing and administration charge changes as the fund value increases to higher fund value bands. If you select the default investment option, the following marketing and administration charge is applicable:

If you prefer to select your own funds and will be investing recurring monthly payments, the following marketing and administration charge is applicable:

Investment Management Charges
An asset manager charges fees for investment research and selecting the underlying assets for a specific investment fund. These fees are taken into account in the calculation of the daily unit price of the investment fund. The published performance figures of the investment fund are therefor net of these fees.

If you select your own funds, the Investment Management Charge is the weighted average of the selected investment funds. The value of the Investment Management Charge for each of the available investment funds is shown on the fund selection table and in the fund fact sheet for that fund.

A transaction charge is applicable for each of the changes below. The charge is currently the smaller of R300 and 1% of the fund value.

• Reducing or stopping of the recurring payment;
• Taking an early retirement benefit;
• Terminating the plan.

This transaction charge will not be taken for changes made after the planned retirement date.

If you are invested in the default fund and would like to add the ability to select your own funds, you will be charged R300 – however this is only applicable if you intend on making recurring payments.

Marketing and advice charges are payable on the Sanlam Retirement Annuity bought on BlueStar website due to the commission and investment advice fees payable to the principal of the BlueStar business. The commission can be renegotiated at any time by contacting your BlueStar business (see “Contact Us” for details) or the Sanlam Life Client Care Centre on 0860 SANLAM (0860 726 526) or life@sanlam.co.za.

The Sanlam Retirement Annuity bought on a BlueStar website will be included in the regular reviews of your comprehensive financial plan. For this the principal of the BlueStar business will receive a commission of 2.5% of any recurring payment. An initial marketing charge will be deducted from each payment based on this commission, and is currently 2.85% for recurring payments.

For plans bought on BlueStar websites where you select your own investment funds, you will also get ongoing investment advice and services, including performance feedback. For this the principal of the BlueStar business will receive 0.575%, including VAT if applicable, of the fund value per year. A fund-based fee will be deducted from the plan based on this investment advice fee for as long as there is an investment advice agreement with any adviser in the BlueStar business.

As soon as your application has been processed, you will have 30 days in which to examine the contract documents, and decide whether you wish to continue with the plan.

If the plan does not meet your requirements, and if you have not made any changes to it, you can cancel it by notifying your BlueStar business in writing during this period. We will then refund any payments you have already made. If the assets in which the payments were invested have decreased in value, or if you have already received benefits from the plan, we will reduce the amount to be refunded to you accordingly.

If you require further information on your Sanlam Retirement Annuity, please contact your BlueStar business (see “Contact Us” for details) or the Sanlam Life Client Care Centre at 021 916 5000 or 0860 SANLAM (0860 726 526) or life@sanlam.co.za. Our compliance department can be contacted at the same number.

If a recurring payment is applicable, the plan starts on the date that the first payment is collected. If we cannot collect the first payment on your preferred start date, we will collect the first payment one month later and move the start date accordingly.

Yes, the recurring payment will increase with the Sanlam inflation rate one year after the plan's start date, and on every plan anniversary thereafter.

The Sanlam inflation rate is determined taking into account the change in the consumer price index, or any other commonly accepted method of measuring inflation that may apply at the time. The Sanlam inflation rate may differ from published inflation rates, due to differences in calculation methods. A minimum rate applies, which may change from time to time.

Yes, you can add one-off contributions at any time after your plan has been issued. Please contact your BlueStar business (see “Contact Us” for details) or the Sanlam Life Client Care Centre at 021 916 5000 or 0860 SANLAM (0860 726 526) or life@sanlam.co.za

In your application, you need to indicate the date that you want the first payment to be deducted. If it is not possible to deduct the first payment on this date, we will deduct it one month later.

All payments are due on the same day of the month as the date selected for the first payment, or the first working day thereafter if the due date is not a working day.

Select the date for the first deduction to fall on or just after your salary payment date, to ensure that you have sufficient funds available.

The recurring payment can be increased, reduced or stopped. Contact the Sanlam Client Care Centre on (021)916-5000 or 0860 726 526(SANLAM) or send an e-mail to life@sanlam.co.za.

• The minimum increase amount is currently R150 per month.
• If you reduce the payment, it cannot be less than the minimum payment for a new plan. Currently this is R300 for investments of 20 years or longer, R400 for 15 to 20 years and R500 for 10 to 15 years if you are investing in the default investment option. If you select your own funds, the minimum payment is R500 for investments of 20 years or longer and R750 for 10 to 20 years.

If you select the default option, your money is invested in the Satrix Life Time Investment Option.

This option initially invests in a passively managed fund, tracking a basket of indices at a very low investment fee. This fund is moderately aggressive and can have a fair amount of fluctuations in short-term returns, in anticipation of higher real return over the long-term. Six years before your retirement date, your investments are phased into the Wealth Protector fund to protect your savings against the possibility of capital loss at your planned retirement date. It is important that you adjust the planned retirement date on your Sanlam Retirement Annuity should your retirement plans change.

If you prefer to select your own funds, we offer a range of quality investment funds. You can choose up to five funds at first, and can switch between the available funds at any time. The first four switches in any plan year are free.

We invest your full payment in the respective investment funds by buying units in each of these funds. The unit prices of the investment funds are not guaranteed, and may increase or decrease over time.

The total fund value of the plan is equal to the sum of the values of the underlying investment funds. The fund value for each investment fund is equal to the number of units you have in the fund multiplied by the unit price at the calculation date.

In the event of a claim, please inform us as soon as possible. To obtain the necessary claim forms and to ensure that all the required information is supplied, contact the Sanlam Life Claims Call Centre at 021 916 1710.

Depending on the nature of the claim, documentary proof (e.g. a death certificate or medical report) will be required.

You can retire from your Sanlam Retirement Annuity at any time from age 55, or earlier in the event of ill-health.

The retirement benefit of the Sanlam Retirement Annuity is equal to the fund value of the plan less the transaction charge, if applicable. If you retire early, the Wealth Bonus that is added to the fund value will be lower than it would have been if you had invested until your planned retirement date.

According to current legislation, up to one-third of the retirement benefit may be taken as a lump sum. The balance must be used to provide regular pension payments.

The fund value plus the Wealth Bonus calculated to the date of death will be paid either as a lump sum or used to provide regular pension payments.

As required by the Pension Funds Act, the death benefit must be paid to the dependants and the nominees (if appointed) of the life insured. The trustees of the Sanlam Retirement Fund are responsible for allocating the benefit to the dependants and nominees.