An investment product which pays an income from your retirement savings during retirement
The Hollard Living Annuity is intended to provide a regular income to investors who have retired, using retirement savings received on retirement from a Retirement Fund. The benefit from a Pension Fund, Provident Fund, Preservation Fund and Retirement Annuity Fund may be used to purchase a Hollard Living Annuity. Investors can select the income they wish to receive from the investment and the number of installments per year in which it should be paid. This may be reviewed and amended on an annual basis.
The product does not guarantee to provide you with an income for the rest of your life, and it is the investor’s responsibility to ensure that the income payment selected is at a level that is sustainable. You are offered a selection of carefully selected investment portfolios to invest into, and you are able to change this selection whenever you wish to.
For a summarised overview of the Hollard Living Annuity click here.
For more detailed information, click here.
Investment Portfolio List
Click here to view the list of Investment Portfolios available for selection on the Hollard Living Annuity.
Hollard Investments OnlineHollard Investments Online is our secure online services portal. It allows you to access your Hollard Investments information in a safe and secure environment. Click here to find out how to register.
Features & Benefits
Features and Benefits of our Living Annuity
|Features and Benefits||Product Details|
|Tax Implications||Income tax will be deducted from your 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 Dividends Tax.|
The benefit due on the death of the investor is the value of the investment account at the time of processing the death claim, less any fees and charges. Hollard Life will allocate any benefit due to the Nominated Beneficiaries as specified on the policy. Should there be no Beneficiaries on record any benefit will be paid to the deceased estate of the investor.
Each beneficiary who has been awarded a portion of the death benefit will be provided the benefit in one of the following ways:
|Access to Capital||
The purpose of the product is to provide a regular income to investors during retirement. You may not withdraw from your Living Annuity apart from the regular income payments you receive, unless the value of the investment is below a legislated minimum amount, in which case a full withdrawal may be requested. Tax will be deducted from the withdrawal before it is paid out.
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What will it cost?
|Product Details||Product Charges|
Initial Administration Fee
No initial administration fee is charged.
Initial Management Fee
Certain Managers may charge an initial fee on your investment or switch into an Investment Portfolio. Click here to see a list of funds available for the Hollard Living Annuity.
Financial Advisor Initial Fee
A maximum fee of 1.5% excluding VAT.
Annual Administration Fee
A weighted average fee is charged per policy/investment account according to the following fee scale:
The fee is levied monthly in arrears by deducting units from your underlying Investment Portfolios to the value of the investment account.
Annual Management Fee
Managers charge annual management fees, which are incorporated into the daily unit price of the Investment Portfolio. Click here to see a list of funds available for the Hollard Living Annuity.
Financial Advisor Annual Fee
A maximum fee of 1% excluding VAT.
Hollard Living Annuity FAQs
Find out everything you need to know about the Hollard Living Annuity.
- What is the purpose of the Hollard Living Annuity?
- The Hollard Living Annuity is an investor-owned compulsory annuity policy intended to provide a regular, non-guaranteed income to investors who have retired from a Retirement Fund.
- How do I invest into 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 is the minimum investment amount?
- The minimum initial amount required to open an Investment Account is R50,000
- What annuity income amount can I choose?
- Current legislation requires that you select an 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 your investment account as at the Anniversary date of the policy.
- How often do I receive my annuity income payment?
- You may choose from a monthly, quarterly, bi-annual or annual payment.
- Change I change my annuity income and payment frequency?
- You will only be able to adjust your annuity income amount and payment frequency once a year on the day of the year that the policy started, which is referred to as the Anniversary date of the policy.
- What are the tax implications of this investment?
- Income tax will be deducted from your 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 Dividends Tax.
- What underlying investment portfolios do I invest in?
- When you open your investment account in the product you will select the investment portfolios into which you wish to invest. You may select any one or a combination of the Investment Portfolios offered, and may switch between funds at your discretion. It is important for you to monitor and review your investment portfolio selection on a regular basis, in order that your investment continues to meet your financial needs. 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?
- 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 your investment 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 value of your investment account nor does it guarantee the performance of the investment. The market value of the investment may fluctuate and go down as well as up, and past performance is not necessarily a guide to the future. The investor carries the investment and market risk which includes 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 that 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 take ad-hoc withdrawals from my investment?
- You may not withdraw from your Living Annuity portfolio, unless the value of the investment is below a legislated minimum amount, in which case a full withdrawal may be requested. Tax will be deducted from the withdrawal before it is paid out.
- What happens if I pass away?
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. Hollard Life will allocate any benefit due to the Nominated Beneficiaries as specified on the policy. Should there be no beneficiaries on record any benefit will be paid to the deceased estate of the investor. Each beneficiary who has been awarded a portion of the death benefit will be provided 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 pay-out.
- A combination of a compulsory annuity purchase and a cash pay-out.
- The purchase an accelerated annuity to be paid over a minimum term of 5 years. For minors the minimum term will be 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?
- It is recommended that you appoint a financial advisor to assist you. Hollard Life in their capacity as the Administrator and the Manager do not provide financial advice, and may only supply the investor with factual or administrative information relating to the investment products and portfolios.
- Tel: 0860 202 202
- Email: firstname.lastname@example.org
- Fax: +27 11 351 3816
- For compliments and complaints please fill in the Customer Support form on the right. Alternatively view our complaints process by clicking here.
Select and complete the form of your choice
- Select the relevant form from the list below.
- Print and complete the form.
- Attach all required documentation.
- E-mail or fax the completed form to email@example.com or +27 11 351 3816.
|First-time Investors||Existing Investors|
|Application Form||Additional Contribution Form|
|Information document||Change of Details Form|
|Investment Portfolio List||Annual Annuity Review Form|
|Product Brochure||Withdrawal Form|
|Switch and Rebalance Form|