Question:
I have two retirement annuities with Sanlam and have elected to retire at age 55. Can I opt to continue contributing to this retirement annuity until, for example, age 65 or am I tied to the contract? I have been reading a lot lately about your fee structure and am considering moving my retirement annuity to 10X. Is it possible to transfer? Are there penalties for a transfer? Do I need to make my RA with Sanlam paid-up first before the transfer?
Answer:
Chris,
You can continue to contribute to your retirement annuity for as long as you wish, you are not bound by the initial maturity date. You can also transfer your retirement annuity to 10X or another service provider. By transferring (requesting a transfer), you are effectively making your current retirement annuity paid-up, and entering into a new contract with 10X. The terms and conditions of your retirement annuity will determine any penalties on the transfer; however the closer you are to your contractual maturity date, the less those penalties should be. Once you have reached/passed your maturity date, there should be no penalty as you have fully complied with the contract terms. There are no penalties on making your 10X RA paid-up.
