A pension or provident fund is appropriate for employers who wish to provide for their employees’ retirement. Such funds are tax-efficient savings vehicles and offer the following advantages:
- Access to a structured and disciplined investment plan that provides benefits in the event of retirement, retrenchment, resignation, disability or death
- Tax-free contributions, investment returns and cash lump-sum payments
- Option to add group life, disability and funeral cover
- Lower costs than individuals can generally secure for themselves
Although individuals can access similar tax benefit themselves, by investing in an RA, these are typically more expensive, do not offer the same flexibility and are not compulsory.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
