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Retirement annuities

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640 417 Maysure Financial Services

Why Wait? Plan Your Retirement Annuity Now

Retirement planning can feel like a boring topic. But, there are a few things we just have to learn about and enact in our lives for peace of mind. 

When we are working, the one thing we don’t think about too often is our retirement days. But, the truth is we need to think about what this will entail for our future and why this is important.

Why should you care if you have a retirement annuity? Let’s share some ideas:

  • If you don’t have a retirement fund, how will you live comfortably in the future? 
  • What about the fact that you might not have a pension fund as part of your employment package?

Retirement Annuities in South Africa 


Retirement planning has never been more essential. The reality is that today can only lead to a better tomorrow when you financially plan for it. By actively saving and investing. Managing your financial portfolio with your broker can only be to your benefit.

Adding another policy to your financial portfolio will not hurt your “future pocket”. But, what does this mean in South Africa?

South African Laws

Laws are complex. Statutes change often and most people can’t keep up with the amendments. However, as much as it can be a challenge, you need to know how your money is affected in this country.

Current Amendment on the Retirement Annuity in South Africa

The latest amendment came into effect 1 June 2021. This legislation governs the retirement fund industry and will focus on helping South Africans to save enough money.

The National Treasury published final notices that give effect to the 2021 Budget announcements to increase the de-minimis amount regarding withdrawals for paid-up annuities. 

gavel and coins

The new law also states that transfers from your various financial portfolios, such as a pension fund, will be portable and tax-free.

The best news about a retirement annuity? There is no limit to the number of retirement annuities you can have in South Africa. An annuity will give you a lifetime’s worth of peace.

Why Should You Invest in a Retirement Annuity When You Are Younger?

As a young adult, you have fewer responsibilities. Therefore tucking away money for your retirement does not feel like a burden. It also helps to create a sense of financial responsibility too. 

  • Start early, there is no such thing as “you’re too young” when it comes to financial planning and stability, especially for the future.
  • Plan, plan, and plan some more. Map out your retirement plan and if you’re not sure how to go about this, speak to a financial advisor. At Maysure Financial Services, we are always willing and happy to assist with your personal finances. 
  • Know your goals. Take control of your finances. Formulate a vision to help you to navigate what the returns on your investments will be. 

Where Do You Start?

If you have little understanding of retirement annuities, speak to a qualified professional. 

Speak to your financial advisor to gain valuable perspectives. Then, you can make an informed financial decision for your future.


Gaining clarity for your future financial endeavours can only be done by you. You have the authority to start this journey and choose when to start the marathon.

What to Consider When You Are Investing 

Do not rely on your children. Your children have their own lives and dreams to fulfil. 

At times, this cannot be avoided. But, if you have control over your financial circumstances, try and keep it that way. 

Try to avoid depending on Social Security Grants in South Africa. It is simply not enough, especially when you compare it against the cost of your current lifestyle.

The older you become, the more you will need health care. Consider that you will want the best care possible, especially as a senior citizen.

Long-Term Benefits

Although you may be able to access your retirement fund earlier, the idea is to build a long-term income. Trying to save can be a difficult task however the security that a retirement annuity brings until your passing can be a relief.

There are various financial products on the market. The retirement annuity is one of the most attractive of those available. 

With some of the products, you receive a once-off payment of R500 000. This amount is tax-free. However, depending on the amount you withdraw every year the tax is proportionate to that per year.

Live Your Best Retired Life

coins-in-money- jar

Sitting down with experienced financial planners like Maysure Financial Services can significantly enhance your returns.

People don’t plan to fail, they fail to plan. We are asking you to take charge of your finances.

To find out more about the retirement annuities, contact us here:

+27 11 839 2302

Tax label on clock featured image for Maysure
624 407 Maysure Financial Services

Tax Season: How to Maximise Tax Benefits

The end of the 2021 tax year, 28 February, is nearly upon us. This means it’s your last chance to take advantage of the tax benefits available to you.

They range from deferring tax payments to benefit you in the short term to optimising tax-free investments for the long term.

Let’s take a deeper look at how you can maximise your tax benefits before the end of the 2021 tax year.

Tax-Free Investment Account

Man smiling at computer

Opening a tax-free investment account is something every South African should be doing. Not only does it allow you to invest across multiple financial products, but all your returns are completely tax free!

This was introduced by the government in 2015 as a means to encourage people to save money. The investment amount is capped at a certain amount each year.

In the 2020 tax year, the cap was set at R33 000 per person. For the 2021 tax year, the cap was increased to R36 000. However, bear in mind that the lifetime limit of R500 000 per person remains.

So, if you haven’t reached your yearly investment cap, now is the time to take advantage of this tax-exempt investment opportunity. If you already have a tax-free investment account, then ensuring you’ve contributed your yearly amount is a wise move.

However, if you do not have an account, we recommend that you discuss this opportunity with your financial advisor. We can assess whether this type of long-term investment suits your current income level and debt situation, and aligns with your investment goals.

Contact us and we’ll take a look at your portfolio and advise you on the best way forward.

Retirement Funds

Blue chairs on beach facing sea

Retirement planning is an important part of the financial process. It ensures an individual’s long-term financial health, but it can also provide great tax benefits in the short term.

One such advantage involves increasing the amount you contribute to your annual retirement investment. This can ultimately decrease your tax burden and increase your tax return.

An individual is permitted to invest up to 27.5% of their taxable income into their retirement fund per year. In addition, by making these extra contributions, you decrease the overall amount of tax that you end up paying each month. You’re essentially investing in your future using pre-tax money and also reducing the amount of tax you pay to SARS.

Not only is this a part of a major saving’s incentive, but it also provides tax return benefits to you in the short term. You’ll be able to claim back more on your annual tax returns by maximising your retirement contributions.

Section 12J Investments

Man reading business newspaper

As an investor, it’s incredibly satisfying bringing in financial gains for you and your family. Investing in venture capital companies (VCCs) takes that sense of satisfaction to another level by encouraging taxpayers to invest in local businesses. The provision of tax incentives to individuals and the streamlining of the claims process has made it much easier for individuals to invest in the local economy.

SARS is now offering you the opportunity to claim a 100% tax deduction from your taxable income, provided you have invested in a VCC for five consecutive years. This began as a means to foster investment into small and medium-sized entities, which form a major part of the South African economy. Section 12J investments are a great way to support local, domestic businesses and to benefit from significant tax returns.

Make sure to discuss this with your financial adviser before making this type of financial commitment. There is a lot more to investing in a VCC than you’d expect, especially in comparison to a tax-free investment or retirement fund.

Expand Your Benefits Before 28 February

Smiling lady in blue sweater

It’s not too late to take advantage of these simple tax benefits. There’s still time to top up your tax-free investment account and your retirement fund, if you haven’t already reached your yearly cap.

It’s also never too late to begin your investing journey. There are many options available, each with their own unique tax benefits.

We are here to help you get the most from your hard-earned money while working toward your short and long-term goals. Tax incentives can provide the extra motivation you need to invest in your today and start putting away for your future.

Please do not hesitate to get in touch to find out how to make your money work for you.

+27 11 839 2302

624 407 Maysure Financial Services

Retirement Annuities: Everything You Need to Know

Nothing is guaranteed except death and taxes. Never was this statement more true than in the year 2020. Unpredictability was the theme with financial stability taking the hardest hit. Almost everyone was forced to learn the importance of saving for a rainy day and the value of solid financial planning.

Of course, no decent plan is complete without the big R. Retirement planning is an essential investment that could make or break your financial future. But, when is enough, enough? How much should you be tucking away for future expenses? How can you be sure that your money will last?

One solution is to add a retirement annuity to your investment portfolio. This investment vehicle is designed for individual investors and is separate to a pension fund provided by your employer. In this guide, we cover everything you need to know about retirement annuities and help you decide if it is a good fit. 

What Is a Retirement Annuity?

Retirement Annuity on label of clear jar

A retirement annuity is a long-term investment that can guarantee the investor an income until death. You can fund your annuity either with an upfront lump sum or through a series of payments. You would typically make either payment years in advance. An annuity can be an asset for extra income during retirement.

There are two types of retirement annuities: fixed or variable. The crucial difference between the two is the rate of return. Your returns on variable annuities may rise and fall depending on the stock markets. Fixed annuities, on the other hand, offer a predetermined amount on returns as soon as your insurer pays. Read a little more on the difference between the two here.

You can choose when and how you would like to be paid out. You might choose to pay in a lump sum and begin collecting returns immediately. Alternatively, you can make payments over a long period of time, allowing your money to acquire interest and possibly increasing your returns. 

Who Should Invest?

Young people sitting in garden smiling together

As an effective money-saving tool, retirement annuities are a good option for anyone. You are never too young or too old to save for the future. That being said, you might be more inclined to look into a retirement annuity if you fall into specific financial categories.

People who are self-employed might benefit from a retirement annuity. Given that you are not receiving a pension fund from an employer, it’s a good way to invest in your future. It also ensures that you have something to fall back on if you stop running your business.

This doesn’t mean that you shouldn’t consider a retirement annuity if you are employed. This investment is a great way to supplement your income and boost your current savings. It also offers the opportunity to expand your investment portfolio.

Retirement Annuity Benefits

Wallet in man's back pocket

Now, for the best part, here are a few reasons you might consider investing in an annuity:

1.   Life-Long Income

The obvious and most attractive reason for investing in a retirement annuity is an income that lasts until your death. This provides a sense of security. Most investments don’t offer this unless your personal savings are astronomical in size.

The rate of return will differ from plan to plan. As mentioned above, fixed annuities are more predictable than variable annuities. Remember, not all annuities have unlimited payments, so make sure you ask your insurer.

Elderly ladies crossing a street

2.   Tax Benefits

In terms of tax benefits, retirement annuities are definitely one of the most attractive products on the market. Firstly, you may deduct a limited amount of your contributions from your tax income at the end of every year.

Second, there is no tax on the interest earned on your savings. In fact, you only pay tax on the fund once you receive your returns. The tax is also considerably lower than the tax on your current income.

Lastly, with some products, up to R500 000 received as a once-off payment is tax free. All returns after that will only be taxed in proportion to what you draw each year.

Computer mouse on retirement annuity documents

3.   Disciplined Savings

Let’s be honest, saving can be hard, not to mention long-term saving. The benefit of not being able to access your retirement savings until after a certain age is definitely a plus. Retirement annuities take away all the temptation of drawing from your nest egg.

They can also offer stability. Whether you are a first-time investor or a seasoned professional, an annuity is a guarantee. For the most part, they are immune from the fluctuations of the stock market, which leaves you with a dependable, limited-risk investment.

Small wooden houses next to coin stacks

While they do have their pros and cons, retirement annuities are a great resource for saving. They can be one of many tools that help expand your investment portfolio. They are also a fantastic way to ensure safety and security for your later years.

Contact us and we will help you decide which retirement annuity is right for you:

+27 11 839 2302