2018 has been a tough year for investments! There has been political upheaval throughout the world and global stock markets have generally declined making important investment decisions very difficult. To try and make sense of the current investment climate join Rod Hunter, Sales Manager of Investec Asset Management as he provides a market update and reviews the key challenges facing South African investors in 2019.
Difference between beneficiary nominations in a Retirement Annuity and a Living Annuity
Retirement Annuities are governed by the Pensions Fund Act. Investors are able to nominate beneficiaries however, the Trustees appointed for the Retirement Annuity Fund consider the individual client’s circumstances and whether or not the client has any dependents. The Trustees then decide as to how the funds should be distributed.
Living Annuities are governed by the Long Term Insurance Act. This means that investors can nominate beneficiaries and on the death of the annuitant the benefit will be paid to the beneficiary. The beneficiary then has the option of choosing how they wish to receive their benefit. This can be in the form of a lump sum or the beneficiary can choose to receive a monthly income or a combination thereof.
Both Retirement Annuities and Living Annuities are exempt from estate duty in terms of section 3(2) of the Estate Duty Act, regardless of whether an annuity or a lump sum was chosen by the beneficiary.
Office Closure
Our offices will be closing on the 14th December 2018 and reopening on the 7th January 2019. Should you have any urgent queries/needs during this period you can contact Greg on 0027 61 017 3468.
“It does not matter how slowly you go as long as you do not stop” Confucius
