Retirement Fund Management

If you’re an active member of a retirement fund, you may prefer Sanlam Private Investments to personally manage your member’s funds.

Your particular fund would of course have to allow members this alternative investment choice, and you would need the approval of your Board of Trustees. These funds can be placed with Sanlam Private Investments through the linked investment platform of Glacier Financial Solutions (Glacier).

Retirement fund members who have terminated their services with an employer can transfer their funds into a preservation fund which can be managed directly by SPI, provided this is available as an investment option. This arrangement is also subject to approval by your Board of Trustees.

This option is ideal for an investor who would like a portfolio of shares and/or fixed interest instruments. It provides an excellent opportunity for capital growth, capital preservation and/or income.

Income at retirement

A Glacier Investment Linked Life Annuity (Illa) can be purchased with the proceeds of retirement savings. Benefits can be transformed into a hassle free, regular income for life and suitably provide for beneficiaries.

The Glacier Illa is linked to an investment portfolio comprising a variety of investments. The underlying investments offer capital growth potential and/or guaranteed income, subject to legislative requirements. For the best of both worlds, the Investment Linked Life Annuity may be combined with a conventional annuity to guarantee a portion of the income for life.

Preservation Funds

If you are a preservation fund member, on leaving your current employer you can transfer your savings from their retirement fund – if it is an approved pension / provident fund – into the Preservation Pension Fund or Preservation Provident Fund.

Retirement savings are transferred to these funds on a tax neutral basis. Service years associated with the investment are retained so you qualify for full tax advantages when you retire.

As a member you may be able to make one taxable withdrawal before retirement, depending on legislation and subject to any restrictions imposed by the transferring fund.

Members are required to retire from the Preservation Pension Fund or Preservation Provident Fund when they retire from employment. If you are not employed, you can retire at any age between 55 and 70 years.

At retirement

• Preservation Pension Fund members can take up to a third of the proceeds as a lump sum after tax has been deducted from this amount. The remainder must be used to purchase an annuity.
• Preservation Provident Fund members can take up to 100 percent of their  proceeds as a cash lump sum after tax has been deducted. Pre-tax proceeds can be used to purchase an annuity.

After tax is deducted, the lump sum can be invested in the Glacier Investment Plan which affords the member the option of including equities in their portfolio. The equity portion of your portfolio is managed by Sanlam Private Investments according to your risk profile. Sanlam Private Investments will buy, manage, sell and deal with equities on your behalf.

Investment options

The Preservation Fund facilitates the growth of capital into a potentially healthy nest egg as your retirement savings are invested in a portfolio comprised of a variety of investments. There is a number of investment options which can be appropriately combined to match your risk profile and investment horizon. These include:

• unit trust investments
• listed shares and other financial instruments
• capital protection products

Where mandated SPI will manage your portfolio objectives by active stock picking and asset allocation within the parameters of Regulation 28 compliance.

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