Combining an annuity and a unit trust when you retire?

The Comprehensive Annuity combines the benefits of a living annuity and a unit trust. This combination allows you to draw the lowest possible level of income from your living annuity. In this way, your investment keeps growing without the growth being taxed. At the same time the unit trust portion, which is taxed, funds the bulk of your regular income payments.

Is this for you?

The living annuity requires you to have at least R600 000 saved in a pension, provident or retirement annuity fund. You need at least R30 000 for the unit trust called the AF Consolidator

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Benefits

The living annuity

  • You can choose to have your medical scheme contributions paid from your income
  • You can top it up with transfers from other retirement funds 
  • The full value of your investment at the date of death will be paid to your nominated beneficiary

The unit trust

  • The investment term is flexible
  • You can make withdrawals from one unit trust or a combination of unit trusts
  • You can transfer this policy as security for any debts