 |
The Solidarity Retirement Plan is a personal savings plan for retirement. The savings enable you to make additional provision for retirement and, at the same time, to enjoy tax relief on your contributions.
The Retirement Plan is a transferable retirement product, independent of the investor’s employer. Changing employers will therefore not affect participation. It also allows for flexible contributions and periods of contribution. This gives members more control over the on-going management of their finances. The tax benefits make the Retirement Plan ideal for pension savings.
Members of the fund qualify for annual tax relief, based on contributions. This is calculated as follows:
Maximum tax relief is calculated at the annual contributions made, limited to the largest of:
- R1 750-00
- R3 500-00 less the permissible pension fund contributions
- 15% of taxable non-pensionable income
An additional annual overdue contribution of R1 800-00 can be treated as tax relief.
More characteristics of the Solidarity Retirement Plan
|
Monthly contribution |
Flexible - minimum of R150 per month |
|
Annual premium increase (optional) |
5% or 7% or 10% |
|
Single premiums |
Ad hoc – minimum of R2 000 |
|
Retirement age |
Earliest 55 years Latest 70 years |
|
Single amounts |
Yes |
|
Implementation fee |
R150 (one-off) |
|
Administration fee |
R15 per month |
|
Asset management fee |
Capital growth – 1,55% p.a. Capital preservation – 0,80% p.a. |
|
Investment strategy (see below) |
Life Phase investment model |
|
Investment portfolios (see below) |
Age < 50 Capital growth portfolio Age > 50 Capital preservation Money market – pre-retirement portfolio |
The Retirement Plan functions as a pension fund and at retirement members may elect to:
- Take one-third of the investment in cash (R120 000 tax free) and invest two-thirds in a living annuity or guaranteed annuity, which will pay a monthly income.
- Invest the entire amount in a living or guaranteed annuity and receive a monthly income.
The Solidarity Retirement Plan offers a basic Life Phase Investment Model as an investment strategy. It was purposefully designed according to feedback received from the market and which shows that members are not sufficiently knowledgeable about investment media and markets to make the relevant choice (with their long term financial objectives in mind). It means that investors need not seek financial advice. This cuts out the middleman and the cost of the product is contained. The Life Phase Model comprises two portfolios, i.e. Capital Growth (for members below the age of 50) and Capital Preservation (for members 50 years and older).
Rob Rusconi rated the Solidarity Retirement Plan, following an investigation, as follows:
- The product is well-priced
- Its main advantage over insured products is the fact that no commission is payable.
- The asset management costs are competitive.
- The product is simple, inclusive and represents good value.
- The product is extremely competitive in terms of long investment periods.
Apart from the fact that the Retirement Plan is extremely competitive in a market that has long been waiting for a similar product, Solidarity is convinced that it will give members the protection they need in the retirement crisis that faces all of us.
Use this opportunity and get your retirement plan today.
Download the application form complete and fax to 086 571 6739.
E-mail: solidariteit.aftreeplan@coriscapital.com
Tel: 0861 101 005
More Information: The Solidarity Retirement Plan [MS Word Format]
Solidarity Retirement Plan: Analysis of Charges [Rob Rusconi Report]
Prepared for Coris Capital, FinQ Financial Services and the Solidarity Trade Union
© 2005 - 2009. Solidarity. Allrights reserved.
|
[Home] [Who are We] [Management] [Benefits] [Join us now!] [My info] [Contact Us] [Search] |
Disclaimer | Terms & Conditions
