For saving and investing your pre-tax income so you can enjoy financial security after retirement – and Sygnia Retirement Annuity contributions (up to a legislated limit) are tax deductible.
“This is the definition of hands-free, hassle-free investing. And the low fees are incredibly important when investing over the long term.”
Jane, 49Advantages
Contributions can be adjusted to your changing needs at no cost.
No fixed monthly premiums or set terms.
Contributions are tax deductible up to a legislated limit.
All growth is tax free.
There is no fixed monthly premium and there is no set term. It’s your investment, so you decide how to invest – lump sum, debit order or both. Your contributions can be adjusted as your needs change at no extra cost.
You may switch between investment funds available on the Sygnia Alchemy investment platform at any time and at no cost.
Limitations
You may not cede your investment in the Sygnia RA Fund, nor use it as security for any debts or commitments.
You may not borrow from your investments in the Sygnia RA fund.
All investments into retirement funds are regulated by Regulation 28 of the Pension Funds Act, which limits the maximum exposure of your portfolio to various asset classes. To ensure that your retirement product(s) remain compliant, your underlying investments can have a maximum of 75% in equities, 45% in foreign assets and 25% in property. Explore our Reg 28 compliant funds
No withdrawals are permitted from the fund before the age of 55 unless:
Via a Savings Component Withdrawal. This gets processed from the funds in your savings component as per the two-pot retirement system.
This is limited to one withdrawal per tax year and is subject a processing fee and tax at your marginal tax rate.
The total value of all components across all your Retirement Annuity’s with Sygnia is less than R15 000.
You have financially emigrated for more than 3 consecutive years.
Your contributions to an RA fund, are tax deductible up to a legislated limit, so you may be taxed on a lower taxable -income amount. All growth, including interest income, net rental income, dividend income and capital growth, is tax-free.
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 below when you are invested in external-manager unit trusts.
ETFs and ETNs
Administration fees are charged as below when you invest in ETFs and ETNs on the Sygnia Alchemy Platform.
Minimum R500 per month. Of this amount, the minimum investment amount in any ETF is R250.
| Sygnia investments | Annual administration fee (excl VAT) | ||
|---|---|---|---|
| Value of all accounts | Sygnia unit trusts and unitised life funds | Sygnia ETFs | External unit trusts, ETFs and ETNs |
| First R2 000 000 | 0% | 0.20% | 0.40%* |
| Over R2 000 000 | 0% | 0.10% | 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.
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 the investment being made
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 then 3 months.
Proof of bank details not older then 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.
Minimum contributions:
Initial lump sum of R20 000
Additional lump sum of R5 000
Debit order of R500 p/m
You may stop contributing at any time, with no penalty.
Please note: Minimum lump sum of R1 000 if investing into the Sygnia Money Market Class S1 or S2.