Sygnia ForLife Living Annuity

Minimum contributions:

• Initial lump sum of R200 000
• Minimum allocation of R50 000 to the Sygnia Lifetime Income Portfolio

You may stop contributing at any time, with no penalty.

Advantages

• Invest your savings after retirement.
• Draw on those savings in a regular and tax-efficient manner.
• Flexibility of a living annuity with the security of lifetime income.

Conditions

• Additional contributions are allowed only as benefits from another approved retirement fund or as a transfer from another living annuity.
• You may not cede your investment in the Sygnia ForLife Living Annuity, nor use it as security for any debts or commitments.

Your Sygnia ForLife Living Annuity will be subject to the following taxes:

• Once you invest your capital in a living annuity, all taxable growth – including interest income, net rental income, dividend income and capital gains – is tax free.
• All annuity payments are subject to tax (PAYE) in accordance with prevailing income tax legislation.

Sygnia will provide you with an annual IRP5, which details the total interest and dividends earned for the tax year. You are required to declare these amounts on your annual tax return. The dividend income earned is subject to Dividends Withholding Tax (DWT) at a rate of 20%. The South African Revenue Service requires Sygnia to pay DWT on your behalf where applicable.

The following administration fee applies depending on the investment funds that you have chosen:

* 0.35% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds below R2million.
** 0.15% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds above R2million.
*** 0.00% (excl. VAT) is levied on the proportionate value of Sygnia unit trust and ETF funds above R10million.

A separate safe custody fee of 0.03% (ex. VAT) per annum applicable to ETFs will be charged.

Note: We consider all your investments when assessing the R2 million and R10 million threshold, including your investments in External unit trusts, ETF’s and ETN’s. For fees relating to the underlying investment managers, please refer to the Sygnia Alchemy Funds document available on request or online at www.sygnia.co.za.

Investment management fees
These vary widely across the Sygnia fund range. For a detailed breakdown of fund-specific fees, please refer to the funds page.

Financial advisor fees
These are negotiable with your financial advisor within the following parameters:

Initial fee: On all products except for the Sygnia Tax Free Savings Account the maximum initial fee is 3%. On the TFSA it is a maximum of 1.5%.
Annual fee: Maximum of 1% per annum (excl. VAT).

If an initial fee in excess of 1.50% is deducted, the annual fee is limited to 0.50% per annum.

• Copy of South African green barcoded ID / South African Smart ID card, birth certificate (if minor) or valid passport (if a foreign national).
• Proof of residential address not older than 3 months.
• Proof of bank details not older than 3 months.
• Proof of deposit/transfer into the relevant Sygnia bank account.
• If a unit transfer is required, please provide a recent statement of your current investment.

All Sygnia products named above and information provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information, but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. Collective Investment Schemes in securities are generally medium- to long-term investments. The value of participatory interests may go down as well as up, and past performance is not necessarily a guide to the future. The Manager does not guarantee the capital or the return of a portfolio. The Sygnia living annuity is underwritten by Sygnia Life Limited, a registered insurer licensed to conduct investment-linked insurance business terms of the Long-Term Insurance Act, 1998 and the Insurance Act, 2017, as applicable.

While both are retirement savings products designed to pay out an income after your retirement, they have distinct features and benefits.

The Sygnia ForLife Annuity combines a living annuity’s flexibility with the security of a guaranteed lifetime income from the Sygnia Lifetime Income Portfolio (underwritten by JUSTSA). You can purchase further Lifetime Income portfolios throughout your investment journey.

The ForLife annuity also offers spousal lifetime income and minimum payment periods in the event of the death of the policyholder.

Reach out to the Sygnia Client Service Centre for detailed information and for help tailoring a quote to your specific needs.

If you are an existing investor and have already obtained a quote, you can switch from your market-linked investments to a Lifetime Income portfolio by completing and submitting a switch form to instructions@sygnia.co.za.

When invested in a ForLife Annuity, you can invest in market-linked investments (unit trust funds, ETFs or unitised life funds available on the Sygnia platform).
When purchasing a Lifetime Income portfolio, you can invest in one of three Just funds (HiGro, StableGro and HiYield). More information on these portfolios can be found here.

The proceeds of your market investments will be distributed to your designated beneficiaries. If no beneficiaries were nominated or a trust was nominated, the death benefit will be paid as a cash lump sum to your estate or to the trust.

The below applies to the Lifetime Income portion of your ForLife Annuity:

No minimum payment period or spousal lifetime income:

If neither a minimum payment period nor spousal lifetime income were chosen, the lifetime income payments will stop upon your death.

Minimum payment period:

If you selected a minimum payment period but pass away before the end of this period, the remaining lifetime income will be converted into a lump sum for your beneficiaries.

Spousal lifetime income:

If you selected spousal lifetime income only, the portfolio will be transferred to your designated spouse, who will receive this income for the duration of their life.

Minimum payment period and spousal lifetime income:

If both options are chosen, the portfolio will be transferred to your designated spouse upon your death. Your spouse will receive full lifetime income until the minimum payment period ends and spousal lifetime income thereafter.