Hollard Preservation Plan

Continue growing your retirement savings

About Hollard Preservation Plan

Transfer any existing retirement savings you may have already built up from a previous employer or another retirement fund.


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Who is it for?

Anyone who would like to transfer existing retirement savings that may have already built up from a previous employer or another retirement fund to preserve savings until retirement. 

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Minimum investment of

R50 000

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Features & benefits

 
  • Enjoy tax benefits – a preservation fund is exempt from Capital Gains Tax, Interest Income tax, and Dividend taxes.
  • Freedom of choice – choose from a range of unit trust funds offered by Hollard and 3rd party Unit trust fund managers.
  • Retire your way - take a third in cash with the other two-thirds being invested in an annuity that pays you an income while you enjoy the finer things in life.
  • Accessibility  - access your money when you need to with a once-off withdrawal of up to 100% before the minimum retirement age of 55. 
  • Estate planning benefits – retirement funds are exempt from estate duty and executor’s fees.  
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Simply put

A summarised overview of our Preservation Plan.

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Explained fully

A detailed document explaining all the rules and processes of our Preservation Plan.  

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Portfolio list

A list of the portfolios available within our Preservation Plan. 

Need to get in touch with us?


Call Hollard Investments on
0860 202 202 or email 
customercare@hollardinvestments.co.za

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Visit our secure online portal to invest now or manage your investments.
 

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 Fee

if fully invested in 3rd Party Manager Funds – weighted fee. (excl. VAT)

Annual Admin Fee

if 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 Preservation Plan 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 adviser 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 adviser initial fees, and a maximum of 1% per annum (excl.VAT) applies for financial adviser ongoing fees.
  • For more information, please refer to the Investment Portfolio list.
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Access the Hollard Prime Fund factsheets, latest and historic unit prices, investment insights, and more.

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Find all the forms and documents you’ll need to invest in the Hollard Pension Preservation Plan 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: 

  1. Decide how much you want to invest and into which of our Investment Portfolios.
  2. Complete an investment quotation.
  3. Send the completed and signed investment quotation, application form and required documentation to: 

Fax: 011 351 3816 
Email: customercare@hollardinvestments.co.za 

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Find the best Hollard Investment solution for you. Get an online quotation today. 

 
Frequently asked
questions

What does the Hollard Preservation Plan provide?

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The Hollard Preservation Plan provides a tax-efficient way for you to preserve your existing pension fund retirement savings. Savings are kept in a preservation fund until retirement at which time you will receive a retirement benefit.

How do I invest in the Hollard Preservation Plan?

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The following may be transferred to the plan, subject to the product rules and relevant legislation:
 

  • A provident fund or pension fund benefit transferred in the event of your resignation, retrenchment, or dismissal from an employer.
  • A provident or pension preservation fund benefit transferred from another provident or pension preservation fund.
  • A provident preservation, pension preservation, and/or retirement annuity fund benefit, transferred at your request, or in the event of the winding-up of the fund.
  • A benefit payable to you in the event of retirement from a pension or provident fund, can be transferred directly from your pension or provident fund.
  • A benefit received as part of a divorce settlement via an approved court order, which you can elect to invest into the Pension Preservation Plan.

What are the tax implications of this investment?

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Income tax will be deducted from any benefit taken in cash before it is paid out on withdrawal, retirement, or death, in accordance with income tax legislation. The investment is not subject to capital gains tax, interest income tax, or dividend taxes.

What are the underlying portfolios I can invest in?

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You can choose from a range of Investment Portfolio options. You may select any one or a combination of them and may switch between portfolios at your discretion. It is important for you to monitor and review your investment portfolio selection so that it continues to meet your financial needs.

What is Regulation 28 and how does it affect my investment?

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To protect a member’s retirement benefit, the Pension Funds Act 24 of 1956 contains guidelines that regulate the extent to which a member may invest in certain asset classes. Hollard is required to ensure that each member’s investment complies with these asset exposure limits, which broadly speaking are as follows:
 

  • 75% exposure to equities.
  • 50% exposure to non-government debt instruments.
  • 45% exposure to offshore assets.
  • 25% exposure to property.


Each Investment Portfolio offered to investors in the Hollard Preservation Plan complies with the Regulation 28 limits.

Can the investment be used as security/collateral?

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No, the right to benefits may not be ceded or pledged.

Can the investment be cancelled and does a cooling-off period apply?

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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 approved pension fund or retirement fund.

Is the investment guaranteed?

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No, the Preservation fund 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?

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No, you may not make additional contributions to your investment account. You may open multiple investment accounts should you have benefits from separate employer’s pension funds that you wish to preserve.

Can I withdraw from my investment?

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You are entitled to one full or partial withdrawal benefit prior to retirement. If you have already taken a withdrawal from the benefit when it was being managed within another preservation fund (or if you transferred your benefit to the Hollard Preservation Plan from an employer’s pension fund after retirement age), you will not be permitted to take another withdrawal after transfer to the Hollard Preservation Plan. Income tax will be deducted from the withdrawal before it is paid out.

When can I retire and take my retirement benefit?

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You may request to retire from the Fund once you have reached the age of 55. You may request an early retirement in the event of permanent disability due to ill health or illness. Early retirement requests are granted at the sole discretion of the Trustees of the Fund.

What happens when I retire?

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A maximum of one-third of your retirement benefit may be withdrawn in cash. Tax will be deducted from the withdrawal before it is paid out according to a tax directive issued by SARS. The portion of the benefit, which is not cashed out, at a minimum of two-thirds of the benefit value, must be used to purchase a compulsory annuity from a registered long-term insurer. If the retirement benefit on the date of retirement is R247 500 or less then you may withdraw the entire benefit in cash, you are not required to purchase a compulsory annuity.

What happens if I pass away?

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Your Hollard Preservation Plan investment does not form part of your estate and will not be governed by your last will and testament. In accordance with Section 37 of the Pension Funds Act, the Trustees of the Preservation Fund have full discretion to award death benefits as they feel appropriate. Dependents will be given preference when allocating the benefit in accordance with legislation, after which nominated beneficiaries and your estate will be considered. 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 party who has been awarded a portion of the death benefit will receive it in one of the following ways: 

 

  • The purchase of a compulsory annuity from a registered long-term insurer.
  • A cash lump sum payout.
  • A combination of compulsory annuity purchase and cash pay-out.


Any benefits taken in cash will be subject to income tax.

Do I need a financial adviser to invest in this product?

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It is recommended that you appoint a financial adviser to assist you with your pension fund. Hollard Life, in their capacity as the administrator and the manager, doesn’t provide financial advice and may only supply factual or administrative information relating to investment products and portfolios.

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. 

Have some questions or looking for further insight?


Send us your details and we will give you a call.

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