Sygnia Preservation Fund

Minimum contributions:

Initial lump sum of R50 000.

Advantages

• Retirement savings are safeguarded against creditors.
• All taxable growth, including interest income, net rental income, dividend income and capital gains, is free of tax.
• No initial or exit fees apply.
• Retirement savings plans that allow you to preserve your accumulated capital in an occupational pension or provident fund, with all its tax benefits, when you change employment (resignation, retrenchment or dismissal).
• You may transfer from an existing preservation fund to the Sygnia Preservation Fund. You may also transfer out of the Sygnia Preservation Fund to another approved preservation, retirement annuity or occupational pension or provident fund. The allocation of your components will be transferred with the same proportions.

Conditions

• You may not borrow from your investments in the Sygnia Preservation Fund.
• You may not cede your investment in the Sygnia Preservation Fund, nor use it as security for any debts or commitments.
• Sygnia Preservation Funds allow for one full or partial withdrawal from the vested benefit of your investment’s vested pot prior to retirement, subject to the relevant withdrawal tax tables. You can also make one withdrawal from your savings pot per tax year; these withdrawals are subject to a processing fee and are taxed at your marginal tax rate.

The Sygnia Preservation Funds offer you the same significant tax benefits available through an occupational pension or provident fund:

• At retirement from the Sygnia Preservation Funds, the portion of the accumulated benefit transferred to a post-retirement pension product, such as a living annuity, is free of tax. The portion taken as cash may be taxed.
• All taxable growth, including interest income, net rental income, dividend income and capital gains, is free of tax.

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 or valid passport (if a foreign national).
• Proof of residential address less than 3 months old.
• Proof of bank details not older than 3 months.
• Proof of 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. Unit trusts, unitised life funds, exchange traded Funds (ETFs) or exchange traded notes (ETNs) are available on the Sygnia platform.

No fees or penalties will be charged by Sygnia to transfer your benefits to the Sygnia Provident Preservation Fund or Sygnia Pension Preservation Fund. We encourage you to check with your transferring fund if they will charge any transfer/exit fees.

If you are transferring your existing provident or pension savings to Sygnia, the same split will be applied to your pots with Sygnia.

Additional contributions cannot be made directly via EFT or debit order to your Sygnia Provident Preservation Fund or Sygnia Pension Preservation Fund, but you can add funds if the contribution comes as a benefit from another approved retirement fund. This means you can transfer amounts from approved preservation funds or employer pension or provident funds into the respective Sygnia Preservation Fund.

Savings pot:
You can make one withdrawal from your savings component per tax year (provided it has a minimum balance of R2 000).

Withdrawals from the savings component are taxed at your marginal tax rate and incur a transaction fee of 2% (excl. VAT), with a minimum of R100 and a maximum of R600 (excl. VAT).

Once-off pre-retirement withdrawal:
You can make one full or partial withdrawal before retiring from the fund, which will be subject to the applicable withdrawal tax tables.

Ref: https://www.sars.gov.za/tax-rates/income-tax/retirement-lump-sum-benefits/