Question:
I have an Investo retirement annuity with momentum which became paid up due to the fact that I had stopped making contributions since I got retrenched I got a job by never continued, I know I can only withdraw at 55 but if I want to continue making contribution will I continue from where I have left off or will the provider force me to catch up on the contributions I have missed?
Answer:
Khomotso, The provider has effectively closed your policy. If you want to resume contributions, they may be able to reactivate the policy but more likely, they will ask you to take out a new policy. You can save yourself a lot of hassle and money by rather taking out a new age (unit-based) retirement annuity with a fund manager. These are more flexible, you can take contribution holidays without making your retirement annuity paid-up and there are typically no early termination charges if you have to make your retirement annuity paid-up. We - 10X - offer such a product, but so do other providers. Find out more on our blog or on our retirement annuity product page.
