Question:
Hi can I transfer my provident fund to 10x and can you give me a monthly payment as a pension payment and must I pay the tax when I transfer my provident fund to you.
Answer:
Nick, There are two ways you can receive a monthly income from your provident fund proceeds. One is by way of a guaranteed annuity, which pays you a pre-determined monthly income for the rest of your life. 10X does not offer this type, you must contact one of the large life insurance companies for this. Shop around for the best rate. The other is by way of a living annuity (LA). The living annuity allows you to decide how you want to invest your money and how much income you want to receive every year (it must be between 2.5% and 17.5% of your capital as at the anniversary date). This income can be paid monthly. This is a more flexible product, your capital does not die with you, but it is also more risky, as you may outlive your savings if you draw down too much, too soon. 10X is launching its living annuity this month. The minimum transfer amount is R750 000. You pay an annual fee of 0.86% of VAT on the first R5m (less on amounts above that), and there are no initial, transfer or admin fees (ie just one fee). You do not pay tax on your provident fund proceeds if you transfer across to a Living (or Guaranteed) Annuity.
