Hollard Living Annuity
An investment that provides you with an income during retirement
About Hollard Living Annuity
Who is it for?
Investors looking for a flexible living annuity when drawing an income from their retirement plan savings.
Minimum investment of
R165 000
Features & benefits
- Regular living annuity income payments – choose an income between 2.5% and 17.5% of the value of the investment.
- Invest your way – make your own investment choices from carefully selected Unit Trust Portfolios.
- Choose when you get your income: monthly, quarterly, bi-annual, or annual payments.
- Flexibility – change your living annuity portfolio selection at any time, at no cost to you.
- Estate planning benefits - payments made directly to nominated beneficiaries and proceeds are exempt from estate duty and executor’s fees.
Explained fully
A detailed document explaining all the rules and process information of our Living Annuity.
Need to get in touch with us?
Call Hollard Investments on
0860 202 202 or email
customercare@hollardinvestments.co.za
Visit our secure online portal to invest now or manage your investments.
Have a complaint?
Additional product resources
Fees and charges
View our table with the fees charged based on the investment value.
How to invest
Follow our easy steps on how you can invest with Hollard Investments.
Frequently asked questions
Go to our frequently asked questions to help you with any queries you may have.
Fees and charges
A fee is charged on the value of your investment account as follows:
Investment Value | Initial Fees (excl. VAT)Hollard initial administration fee | Initial Fees (excl. VAT)Transaction fees | Annual Admin Feeif fully invested in 3rd Party Manager Funds – weighted fee. (excl. VAT) | Annual Admin Feeif fully invested in Hollard Prime Unit Trust Funds – flat fee (excl. VAT) |
|---|---|---|---|---|
From R0.0 to R1 million | 0% | 0% | 0.45% | 0.25% |
Next R500 000 | 0% | 0% | 0.40% | 0.25% |
Next R500 000 | 0% | 0% | 0.35% | 0.25% |
Thereafter | 0% | 0% | 0.25% | 0.25% |
Initial Fees (excl. VAT)
Hollard initial administration fee
From R0.0 to R1 million
0%
Next R500 000
0%
Next R500 000
0%
Thereafter
0%
Initial Fees (excl. VAT)
Transaction fees
From R0.0 to R1 million
0%
Next R500 000
0%
Next R500 000
0%
Thereafter
0%
Annual Admin Fee
if fully invested in 3rd Party Manager Funds – weighted fee. (excl. VAT)
From R0.0 to R1 million
0.45%
Next R500 000
0.40%
Next R500 000
0.35%
Thereafter
0.25%
Annual Admin Fee
if fully invested in Hollard Prime Unit Trust Funds – flat fee (excl. VAT)
From R0.0 to R1 million
0.25%
Next R500 000
0.25%
Next R500 000
0.25%
Thereafter
0.25%
- Should you not be fully invested in Hollard Prime Unit Trust Funds within your Hollard Living Annuity account, the annual administration fee will be calculated proportionally using the two fee scales provided in the table above for the respective portfolios.
- Your financial advisor may charge you an initial and ongoing fee. These fees are negotiable between you and your advisor. A maximum of 1,5% (excl.VAT) applies for financial advisor initial fees, and a maximum of 1% per annum (excl.VAT )applies for financial advisor ongoing fees.
- For more information, please refer to the Investment Portfolio list.
Access the Hollard Prime Fund factsheets, latest and historic unit prices, investment insights, and more.
Find all the forms and documents you’ll need to invest in the Hollard Living Annuity here.
Invest now by following these easy steps
We will always recommend consulting a qualified financial adviser to guide you in choosing suitable products and portfolios for your specific financial goals and risk tolerance. Comprehensive financial planning goes far beyond choosing a product and encompasses many elements that all work together towards a successful financial outcome.
Ready to invest without the assistance of a financial adviser? Please follow the steps below:
- Decide how much you want to invest and into which of our Investment Portfolios.
- Complete an investment quotation.
- Send the completed and signed investment quotation, application form and required documentation to:
Fax: 011 351 3816
Email: customercare@hollardinvestments.co.za
Find the best Hollard Investment solution for you. Get an online quotation today.
Frequently asked
questions
What does the Hollard Living Annuity provide?
The Hollard Living Annuity is a retirement investment plan intended to provide you with a regular income which is market linked and not guaranteed when you retire.
How do I invest in the Hollard Living Annuity?
Any monies invested in retirement fund products are eligible to be invested into the Hollard Living Annuity when you retire from the Fund, subject to the rules of that Fund and any applicable legislation. This includes Pension and Provident Funds, Retirement Annuity Funds and Preservation Funds.
What annuity income amount can I choose?
Current legislation requires that you select a living annuity income of between 2.5% and 17.5% of the value of your investment account each year. You can specify your annual annuity income as a rand amount or as a percentage of the value of your investment account. This can be amended annually at the anniversary date of the policy.
How often do I receive an annuity income payment?
You may choose from a monthly, quarterly, bi-annual, or annual payment.
Can I change my annuity income and payment frequency?
You will only be able to adjust your living annuity income amount and payment frequency once a year - on the day that the policy started, known as the policy anniversary date.
What are the tax implications of this investment?
Income tax will be deducted from your living annuity income before it is paid out to you, in accordance with Income tax legislation. Tax will be deducted according to the relevant SARS PAYE tax scales by default. Should you wish for a different tax rate to be applied, you may supply a tax directive from SARS to this effect. The investment is not subject to Capital Gains Tax, Interest Income tax, or Dividend taxes.
What are the underlying portfolios I can invest in?
You can select from the range of Unit Trust Funds. You may select any one of them or a combination of them. You may also switch between funds at any time. It is your responsibility (in consultation with your financial advisor) to ensure that the annuity income level of your Living Annuity, relative to the performance of your selected investment portfolios, is sustainable for the rest of your life.
Can the investment be used as security/collateral?
No, the right to benefits may not be ceded or pledged.
Can the investment be cancelled and does a cooling-off period apply?
No, due to the nature of the product, you may not cancel and no cooling-off period applies. You may transfer your investment to another Living Annuity offered by an approved insurer.
Is the investment guaranteed?
No, the product does not provide a guarantee on the investment value of your investment account, nor does it guarantee the performance of the investment. The market value of the investment may fluctuate at any time. The investor carries the investment and market risk, which may include the possibility of losing capital.
Can I make additional contributions to my investment?
Yes, you may invest additional monies into your Hollard Living Annuity, provided it originates from an approved Pension Fund or Retirement Fund. The anniversary date of your portfolio will remain unchanged, and you will not be able to adjust your annuity income level until the next anniversary date.
Can I make ad-hoc withdrawals from my investment?
You may not withdraw from your Living Annuity, unless the value of the investment is below a legislated minimum amount, in which case a full withdrawal may be requested. Income tax will be deducted from the withdrawal before it is paid out.
What happens if I pass away?
Hollard Investments will allocate any benefit due to the nominated beneficiaries as specified in the policy. Should there be no beneficiaries on record, any benefit will be paid to the deceased estate of the investor. The benefit due on the death of the investor is the value of the investment at the time of processing the death claim, less any fees and charges. Each beneficiary who has been awarded a portion of the death benefit will be provided with the benefit in one of the following ways:
- The purchase of a compulsory annuity from Hollard Life or another registered long-term insurer.
- A cash lump sum payout.
- A combination of compulsory annuity purchase and a cash pay-out.
- The purchase of an accelerated annuity is to be paid over a minimum term of 5 years. For minors, the minimum term will be the greater of 5 years or the number of years to the age of 18. Any benefits taken in cash will be subject to income tax.
Do I need a financial advisor to invest in this product?
Hollard Investments, in their capacity as the administrator and the manager, doesn’t provide financial advice and may only supply factual or administrative information relating to the investment products and portfolios.
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Why invest with
Hollard Investments?
Hollard Investments is a part of the privately-owned Hollard Group. Through partnerships and by enabling our clients to create and secure better futures we achieve what is at the core of Hollard Investments’ purpose. We strive for a more efficient and accessible way for your money to get you to where you want to be. We are committed to shared success with financial advisors and investors. We’ve got this, together.
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