Looking for a flexible solution to managing your post-retirement income? Invest in the Sygnia Living Annuity and draw a steady income designed to meet your needs. You decide how the underlying assets are managed and the rate at which you draw on them.
The Sygnia Living Annuity currently has a 40% offshore allocation limit. Please contact our Client Service team should you require more information about this product.
“Once I retired, I wanted to be able to relax and enjoy myself. And spoil my grandchildren.”
Sylvia, 68Advantages
Create a post-retirement income.
All taxable growth, including interest income, net rental income, dividend income and capital gains, is tax free.
Flexibility to adjust your income annually.
Your investment is protected from creditors.
You can switch/transfer between investment funds on the Sygnia Alchemy investment platform at any time and at no cost.
Limitations
You may not cede your investment in the Sygnia Living Annuity, nor use it as security for any debts or commitments.
You must nominate the level of income you wish to draw from your accumulated capital. Current legislation requires that you select an income of between 2.5% and 17.5% of your capital every year. You may receive your income monthly in arrears, quarterly in advance, half yearly in advance or annually in advance. You may change the level of income to be drawn and the frequency of receipt on the anniversary of your investment each year.
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 in accordance with prevailing income tax legislation.
Sygnia will issue you with a tax certificate on an annual basis.
Sygnia unit trust and unitised life funds
No administration fees apply on Sygnia unit trusts and unitised life funds.
All externally managed unit trust funds
Administration fees are charged as follows when you are invested in external-manager unit trusts:
ETFs and ETNs
Administration fees are charged as follows when you invest in ETFs and ETNs on the Sygnia Alchemy Platform.
| Sygnia Investments | Annual Administration Fee (excl VAT) | ||
|---|---|---|---|
| Value of all accounts | Sygnia Unit Trusts | Sygnia ETFs | External Unit Trusts and ETFs |
| First R2 000 000 | 0.35% | 0.35% | 0.40%* |
| Between R2 000 000 - R10 000 000 | 0.15% | 0.15% | 0.20%** |
| Over R10 000 000 | 0.00% | 0.00% | 0.20%*** |
* 0.40% (excl VAT) is levied on the proportionate value of the external-manager funds below R2 million.
** 0.20% (excl VAT) is levied on the proportionate value of the external-manager funds above R2 million.
*** 0.20% (excl VAT) is levied on the proportionate value of the external-manager funds above R10 million.
A seperate safe custody fee of 0.03% (ex. VAT) per annum applicable to ETFs will be charged.
Please note: While Sygnia does not charge any administration fees in respect of its own funds, we consider all your investments when assessing the R2 million threshold, including your investments in Sygnia funds. 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 Alchemy fund range. For a detailed breakdown of fund-specific fees, please refer to Sygnia Alchemy Funds on our website.
Financial advisor fees
These are negotiable with your financial advisor within the following parameters:
Initial fee: Maximum of 3% (excl. VAT) deducted prior to investing
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 not older than 3 months old.
Proof of bank details not older than 3 months old.
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.
Minimum contributions:
Initial lump sum of R100 000.