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Momentum Retirement Annuity

When you invest your money through retirement funds in South Africa, you can expose your retirement savings to growth assets like shares. These assets are essential to produce inflation-beating investment returns.

By giving your retirement policy money time to grow you benefit from the power of compound interest growth to ensure you're more financially secure in your golden years.

Retirement annuities also enjoy significant tax concessions from the South African government, helping you to get more from your investment.

Momentum Investo retirement annuity benefits

  • Contributions - you make regular contributions and can add lump-sum contributions at the start of your retirement investment or any time during the term.
  • Tax efficiency - your investment contributions are tax deductible within limits, which means money you would have paid to SARS can now grow in your retirement annuity. Investment returns also don’t attract any tax, making your money grow faster than in most other investment vehicles.
  • Flexibility - should you experience financial difficulty, you can skip up to 4 monthly contributions during the term of your investment by making use of contribution holidays. If you are not ready after 4 months, you can reduce or stop your retirement policy contribution without a significant impact on your investment value at the time. But you should try and resume making contributions as soon as possible.
  • Loyalty bonus - if you remain invested until the end of your investment term, we will give back most of the retirement planning fees we charged for administering your investment.
  • Access to financial markets - you can select from a range of investment funds that are managed by leading South African fund managers.
  • Protected investment - your retirement plan money is protected against the claims of creditors. Nobody other than you or your dependants can touch it.
  • Estate duty exemption - in the event of your premature death, more money goes to your dependants.
  • Cash lump sum - you can take up to one-third as a cash lump sum at retirement. A portion of or the full lump sum may be tax-free.
  • Regular income - when you retire from your retirement annuity, you must use at least two-thirds of the proceeds to buy a compulsory annuity. This will provide you with a regular retirement income.
Old couple sitting with arms around each other, overlooking a dam

Retirement planning

Speak to your financial adviser today to get more information about retirement annuities as an investment vehicle and more information on how you can use the Investo Retirement Annuity as part of your retirement planning and overall plan to reach financial freedom. If you don't have a financial adviser, find a certified financial planner to discuss how Momentum can help make your money grow.

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Investment options for all savings goals

Momentum Investo offers great ways to invest your savings, whether you want to save for your retirement, your child's education, or towards something special:

  • Retirement - get a call back today or call 0860 664 321
  • Education - a great education is the best gift you can give your child.
  • Lifestyle goals - save for those special things and moments: that dream holiday, a deposit on a new car, your first home?

Start saving with Investo today! Or contact us to discuss other Momentum savings, investments, and retirement plans and alternative solutions, such as the all-in-one My Savings Portfolio investment solution, to secure your carefree retirement.

Investo Retirement Annuity Features

  • Entry age - minimum 1 year, maximum 69 years.
  • Age at retirement - any time after age 55.
  • Initial savings term - up to age 70 years, after which you can choose to continue your investment in 3-year cycles.
  • Recurring contribution - R300 monthly minimum.
  • Ad hoc lump-sum contribution - R5 000 minimum.
  • Contribution growth - automatically increase your regular contribution at a certain percentage each year to combat the negative effect of inflation.
  • Contribution replacer benefit - if you become disabled before your retirement date, this benefit will pay your monthly contributions to the end of the benefit term.
  • Enhancer Benefit - meaningful tax planning opportunities at retirement if you select to take the one-third cash lump sum and your retirement annuity has run for at least 5 years prior to your retirement date.