This depends on your investment period and goals.
Unit Trust
Suitable for meeting your non-retirement investment goals, as they do not have the tax incentives provided to retirement funds. These goals could include saving for a child’s education, a deposit on a house, or just for a rainy day.
Retirement Annuity
Suitable for individuals who wish to save for their retirement. In particular:
- Self-employed people
- Employees in organisations that do not provide a pension or provident fund
- Employees who earn a significant amount of passive taxable investment income (from interest, rent, annuities etc,) and wish to increase their retirement savings
- Employees who wish to claim retirement fund contributions at the maximum permitted rate or amount (27,5% of gross remuneration or taxable income, subject to an annual cap of R350,000) but are not permitted to make additional voluntary contributions at their workplace pension or provident fund
Living Annuity
Suitable if you are retired and you wish to reinvest your retirement savings to provide you with a retirement income, while still growing your investment.
Preservation Fund
Suitable if you are withdrawing from a pension or provident fund (due to resignation or retrenchment) and you wish to preserve your savings as well as the tax benefits attached to those savings.
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.
