This product is also available in the Stratus Premier range. For Stratus/Stratus Premier Investment Linked Pension, the minimum initial sum is R100 000. You can choose between all the Stratus investment funds, as well as a range of unit trust funds.
When your pension or retirement annuity pays out, you are compelled to use at least two thirds of the proceeds to purchase a compulsory pension for life. Which, in effect, means that your money is not yet ready to retire.
So don't stand in its way. Invest it in the Stratus Investment Linked Pension and transform your retirement funds into a flexible, personalised investment portfolio that matches your risk profile.
You may personalise the level of income you require (between 2.5% and 17.5% of the capital) and also review and adjust this annually on the policy anniversary. Sanlam Life pays your income either monthly, quarterly, half-yearly or annually. To sustain your capital, we suggest your income should not exceed medium term inflation plus 2%.
At your death, your beneficiaries may continue the investment for life at the current withdrawal rate or change it to suit their needs. They can even opt to accelerate the pension and have the total fund value paid out over five years. To the degree allowed in terms of the law, this annuity can be commuted within 6 months of your death. Such a lump sum will be taxable at your average tax rate.
To benefit from rand cost averaging, you can initially invest the capital in the Sanlam Money Market Unit Trust fund and phase all or some of it into the Stratus funds you choose, monthly over 1 to 36 months. The minimum initial sum is R100 000.
When you invest in the Stratus Investment Linked Pension, you may choose a maximum of 10 funds from the range below. Clicking on any of the funds will open a new browser with comprehensive fund information. You should ensure that you do a risk assessment based on your retirement needs. Your financial adviser or your broker is able to assist with such an assessment. You should review your lifestyle and income requirements at least annually.
** Risk level / asset class indicated in terms of the currency in which the investments are made. In rand terms, the risk level is increased because of exchange rate fluctuations.
Stratus Premier only
Range of additional Investment Funds
Unit trust class
|Active Building Blocks - Offshore || |
|Offshore Bond Fund ||Fixed Interest|
|Offshore Equity Fund ||Equity|
|Offshore Money Market Fund (US$) ||Cash|
|Offshore Money Market Fund (£) ||Cash|
|Offshore Money Market Fund (€) ||Cash|
|Offshore Property Fund ||Property|
| || |
|Unit Trusts - Fixed Inerest - Varied Specialist || |
|Coronation Strategic Income Fund ||Unit Trust|
|Investec Absolute Income Fund ||Unit Trust|
|SIM Active Income Fund ||Unit Trust|
| || |
|Unit Trusts - Asset Allocation - Flexible Property || |
|Coronation Property Equity Fund ||Unit Trust|
| || |
|Unit Trusts - Asset Allocation - Prudential || |
|Allan Gray Balanced Fund ||Unit Trust|
|Allan Gray Stable Fund ||Unit Trust|
|Coronation Balanced Plus Fund ||Unit Trust|
|Investec Cautious Managed Fund ||Unit Trust|
|Investec Managed Fund ||Unit Trust|
|Nedgroup Investments Managed Fund ||Unit Trust|
|SIM Balanced Fund ||Unit Trust|
| || |
|Unit Trusts - Asset Allocation - Flexible || |
|Element Flexible Fund ||Unit Trust|
| || |
|Unit Trusts - Asset Allocation - Targeted Absolute and Real Return || |
|Allan Gray Optimal Fund ||Unit Trust|
|Coronation Absolute Fund ||Unit Trust|
|Old Mutual Dynamic Floor Fund ||Unit Trust|
|SIM Inflation Plus Fund ||Unit Trust|
| || |
|Unit Trusts - Equity - General || |
|Allan Gray Equity Fund ||Unit Trust|
|Coronation Equity Fund ||Unit Trust|
|Investec Equity Fund ||Unit Trust|
|Nedgroup Investments Rainmaker Fund ||Unit Trust|
|SIM General Equity Fund ||Unit Trust|
|Element Islamic Equity Fund ||Unit Trust|
| || |
|Unit Trusts - Equity - Value || |
|SIM Value Fund ||Unit Trust|
| || |
|Unit Trusts - Specialist Funds || |
|Old Mutual Mining and Resources Fund Class A ||Unit Trust|
|SIM Industrial Fund ||Unit Trust|
|SIM Small Cap Fund ||Unit Trust|
| || |
|Unit Trusts - Global Funds || |
|Sanlam International Cautious Fund of Fund || |
|SIM Global Best Ideas Feeder Fund || |
Know what your investment is worth
Sanlam Life publishes daily performance reports , indicating fluctuations in the unit prices*** of the Stratus investment funds. You may keep track of the value of your investment by multiplying the investment fund price by the number of units Sanlam Life holds for your benefit.
*** This is a long-term policy in terms of the Long-term Insurance Act, 52 of 1998. These units are not units of a unit trust scheme as defined in the Collective Investment Schemes Control Act, 45 of 2002.
The risks you face include:
The risk that investment returns may be lower than expected.
The risk that you may live longer than expected.
If you choose too high a level of income or you do not reduce your income when investment performances are lower than expected, you may deplete your capital over time.
If the Stratus Investment Linked Pension is your only source of income, Sanlam Life advises that the pre-tax selected income should not exceed the medium term inflation outlook plus 2% per annum of the capital. Currently that means a rate of not more than 8% per annum.
If an income of more than 8% is required to sustain your lifestyle, you should rather consider a different type of pension.
You must make sure that you understand the impact of market fluctuations on your future income.
On request, Glacier (who administers the policy on behalf of Sanlam Life) will transfer the Stratus Investment Linked Pension to a living annuity policy or conventional annuity policy issued by another insurer; or to a conventional annuity policy issued by Sanlam Life, provided this meets the requirements of any directive issued by the Registrar of Long-term Insurance.
Currently all interest, dividend or rental income, as well as capital growth within the investment funds are exempt from income tax and capital gains tax.
Income payable to the annuitant is taxable at marginal rates.
Sanlam Life is the owner of the underlying assets of the Stratus Investment Linked Pension.
Make sure you read the fine print regarding all fees that we charge.
Sales, product-related information and information on existing policies: 021 917-9002
Fax: 021 917-9001
International tel: +27 21 917-9002
International fax: +27 21 917-9001
Email: firstname.lastname@example.orgPlease note:
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