Your retirement fund money is probably the single largest amount of money you will ever accumulate, what you do with it today will most definitely affect your financial security tomorrow.
Hollard Wealth’s Preservation Provident and Pension Funds are specifically designed for investors wanting to preserve their retirement savings. They’re insured funds underwritten by the Hollard Life Assurance Company Limited, which makes them a great way of saving for your future.
Hollard Wealth's Preservation Provident Fund
When you retire, you can take the full value of your retirement savings in cash. Alternatively, you can convert part or all of it into an annuity from an insurer.
Hollard Wealth's Preservation Pension Fund
When you retire, you can take up to one third of your total benefit as a cash lump sum. The balance must be used to purchase an annuity from an insurer.
Employees
We've made the Hollard Wealth Preservation Provident and Pension Funds suitable for employees who resign or who are retrenched and want to invest their withdrawal benefits in a tax-efficient and secure savings environment.
Minimum contribution
Your minimum lump sum investment amount is R30,000. Regular monthly or annual contributions are not permitted.
Annual statements
When you join the Hollard Wealth Preservation Pension or Provident Fund you receive a Certificate of Membership. You will also receive an annual member benefit statement illustrating the value of your investments and your membership details. If you would like more regular statements, Hollard Wealth can provide them on request.
Retirement
You may retire from the preservation funds at any time from age 55 onwards.
Hollard Wealth's Preservation Provident Fund on retirement
On retirement you can take all of your accumulated value, from this fund in cash. This will be subject to the applicable tax at the time of your withdrawal.
Alternatively, you could use all or part of your value to purchase an annuity from an insurer of your choice. The capital used to purchase the annuity is transferred tax-free, but the resulting annuity payments will be subject to PAYE and SITE (as applicable at the time of payment). Please consult your Financial Services Provider for more details.
Hollard Wealth's Preservation Pension Fund on retirement
You can take a lump sum of up to one third of your accumulated value in cash. The balance must be used to purchase an annuity from an insurer of your choice.
The lump sum will be subject to the applicable tax at the time of your withdrawal. The capital used to purchase the compulsory annuity will be transferred tax-free, but the resulting annuity payments will be subject to PAYE and SITE (as applicable at the time of payment). Please consult your Financial Services Provider for more details.
Multi-Manager Balanced Global & Multi-Manager Balanced Domestic
15% of the Balanced Portfolios will be invested globally while there is offshore capacity. In the event that offshore capacity is not available, contributions will automatically revert to the Balanced Domestic portfolios. Please contact Hollard Wealth for details of available funds.
Single Manager Balanced Domestic & Single Manager Balanced Global
These portfolios are mandated to reflect each asset managers best investment view for a balanced portfolio and involves tactical asset allocation between equities, bonds, cash and listed property. The Single Manager Balanced Global Portfolio will hold 85% of the Single Manager Balanced Domestic and 15% of the Hollard Balanced Portfolio. Please contact Hollard Wealth for details of available funds.
Specialist Multi-Manager Global Only
These portfolios provide investors with access to many of the best global asset managers. These managers are selected in conjunction with global partners, Frank Russell Company, State Street Global Advisors and EIM. Please contact Hollard Wealth for details of available funds.
Fees
There's an upfront administration charge of 1.0% of the initial transfer value.
An upfront Financial Services Provider Commission of up to a maximum of 3.0% + VAT of initial transfer value can also be negotiated between you and your FSP.
Annual advice fees paid in advance are up to a maximum of 1.0% + VAT.
There's an annual administration charge of a flat R500.
There’s one free switch instruction per year, thereafter a R300 levy per switch will be charged. Any other movement charges, such as retirement, ill health, early retirement and death will also attract a R300 per transaction.
Portfolio asset management charges are 1.14% per annum for local portfolios and 1.85% per annum for global only portfolios.
Capital Gains Tax
There's no Capital Gains Tax on retirement funds.
Retirement Fund Tax
This was abolished effective the 1st March 2007, and is therefore not applicable.
Q. What happens if I die before retirement?
Should you die before retirement age, your full investment amount less any applicable tax, will be paid out as a lump sum to your dependents and beneficiaries.
Q. What happens if I am disabled before I retire?
If you are disabled before you have reached the minimum retirement age, you will be required to produce medical evidence that is satisfactory to the Trustees of the fund and the Receiver of Revenue, whereupon you will be treated as an ill-health retiree.
Q. May I withdraw cash from the fund before retirement?
No, this isn’t permitted.
Q. May I transfer my value to another preservation fund?
Yes, you are allowed to transfer to another registered preservation fund before retirement.
Q. What are my investment options?
You can select a maximum of five investment portfolios. The Hollard Wealth Preservation Provident and Pension Funds can invest into either single or multi-manager funds, both domestic and global.
Q. Can I switch between Investment Portfolios?
Yes, there’s no restriction on switching between available portfolios. One free switch transaction is permitted per annum; thereafter a charge of R300 will be levied per transaction.
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