Hollard Retirement Annuity Plan

Save for your retirement in a disciplined, tax-efficient manner with no fixed contributions required or penalties.

Overview

A tax efficient savings vehicle for retirement

The Hollard Retirement Annuity Plan provides a tax-efficient method for you to save for retirement as an alternative to or in addition to saving via an employer pension or provident fund. You can contribute to your investment whenever you choose to and can invest via a monthly debit order investment starting at as little as R500 per month. Contributions are tax deductible up to the limits as specified in legislation.

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.

The Fund's registered name is “The Hollard Retirement Annuity Fund” (Registration Number 12/8/38099) and is registered in terms of the Pension Fund Act. 

Additional Information

For a summarised overview of the Hollard Retirement 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 Retirement Annuity Plan.

Hollard Investments Online

Hollard 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 Retirement Annuity Plan

Features and Benefits Product Details
Minimum Investment The minimum amount required to open an Investment Account is R50, 000. The minimum recurring monthly debit order amount is R500.
Tax Implications Income tax will be deducted from any benefit taken in cash before it is paid out on retirement or death, in accordance with Income tax legislation. The investment is not subject to Capital Gains tax, Interest Income tax or Dividends tax.
Death Benefits

Your Retirement Annuity 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 Retirement Annuity 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 account 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 pay-out.
  •  A combination of a compulsory annuity purchase and a cash pay-out.

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

Access to Capital

You may not withdraw from the investment until retirement, except in the following instances in which a full withdrawal can be requested, subject to legislative requirements and product rules: 

  • You have officially emigrated in the records of the South African Reserve Bank.
  • The value of your Investment Account is less than the current legislated minimum amount of R7, 000, which may be amended from time to time.
Other Product Features
  • Investor choice with regards to selecting and adjusting the investment portfolios you invest into.
  • Protection of your savings by limiting your investment’s exposure to risky assets, in accordance with Regulation 28 requirements.
  • The ability to make once-off contributions whenever you wish, and to start, stop or amend a monthly debit order contribution over the lifetime of the investment without incurring any penalties.
  • A maximum of a third of the value of your investment can be taken as a cash pay-out when you retire. The balance must be used to purchase a compulsory annuity which will pay you an income during retirement.

Product Charges

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 Investment Portfolio List.

Financial Advisor Initial Fee

A maximum fee of 3% excluding VAT.

Annual Administration Fee

A weighted average fee is charged per policy/investment account according to the following fee scale: 

Investment Value Annual Admin Fee (excl.VAT)
From R0.0 to R1 million 0.45%
Next R500 000 0.40%
Next R500 000 0.35%
Thereafter 0.25%

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 Investment Portfolio List.

Financial Advisor Annual Fee

A maximum fee of 1% excluding VAT.

FAQs

Hollard Retirement Annuity Plan FAQs

Find out everything you need to know about the Hollard Retirement Annuity Plan.

What is the purpose of the Hollard Retirement Annuity Plan?
The Hollard Retirement Annuity Plan provides a tax-efficient method for you to save for retirement as an alternative or in addition to saving via an employer pension or provident fund.
How do I invest into the Hollard Retirement Annuity Plan?
You may contribute to your investment via both ad-hoc investments and a recurring debit order. You can invest a once-off contribution at any time, and may start, stop or amend a monthly debit order investment at any time. You may also invest the following retirement fund benefits into the product, subject to the product rules and relevant legislation:
  • A pension or provident fund benefit which is transferred in the event of your resignation, retrenchment or dismissal from an employer.
  • A retirement annuity fund benefit transferred from another retirement annuity fund.
  • A pension or provident fund benefit from a pension or provident fund which has been wound up.
  • A benefit received as part of a divorce settlement via an approved court order, which the recipient can elect to invest into the Retirement Annuity Plan.
What is the minimum investment amount?
The minimum initial amount required to open an Investment Account is R50, 000. The minimum recurring monthly debit order amount is R500.
What are the tax implications of this investment?
  • Contributions: A portion of the contributions made to a retirement annuity fund are tax deductible and must be declared on your tax return.
  • Payments: Income tax will be deducted from any benefit taken in cash before it is paid out on retirement or death, in accordance with Income tax legislation.
  • 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.
What is Regulation 28 and how does it affect my investment?
In order to protect a member’s retirement benefit, the Pension Funds Act via the prudential investment guidelines regulates the extent to which a member may invest in certain asset classes. The Administrator 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
  • 25% exposure to offshore assets
  • 25% exposure to property Each Investment Portfolio offered to investors in the Hollard Retirement Annuity Plan complies with the Regulation 28 limits.
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 membership and no cooling-off period applies. You may transfer your investment to another approved Retirement Annuity Fund.
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, additional contributions can be added to the investment at any time. You may also invest via a recurring monthly debit order.
Can I withdraw from my investment?
You may not withdraw from the investment until retirement, except in the following instances in which a full withdrawal can be requested, subject to legislative requirements and products rules:
  • You have officially emigrated in the records of the South African Reserve Bank.
  • The value of your Investment Account is less than the current legislated minimum amount of R7, 000, which may be amended from time to time.
When can I retire and take my retirement benefit?
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 or ill-health. Early retirement requests are granted at the sole discretion of the Trustees of the Fund.
What happens when I retire?
A maximum of one third of your retirement benefit may be withdrawn in cash. Tax will be deducted from the withdrawal benefit 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 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 R75, 000 or less then you may withdraw the entire benefit in cash.
What happens if I pass away?
Your Retirement Annuity 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 Retirement Annuity 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 pay-out.
  • A combination of a compulsory annuity purchase and a cash pay-out. 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. The Fund, 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.

Customer Support

Contact details

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 customercare@hollardinvestments.co.za or +27 11 351 3816.
First-time Investors Existing Investors
Application form Additional contribution form
Information document Change of details form

Investment portfolio list

Retirement notification form
Product Brochure Withdrawal form
Switch and rebalance form

Annual fee renewal instruction form