Did someone say free lunch?

Did someone say free lunch?


The Power of a Retirement Annuity

It is a rarity that one comes across a ‘free lunch’ these days but there is one such ‘free lunch’ that we can and should partake in: SARS rewards us for contributing towards our retirement. For some of us that date is very far in the distant future and for others we can see it just over the hill. Irrespective of what phase you are in, we at JH Allen, strongly believe you should take up the benefits that are available to you.

At face value we automatically think a retirement annuity is to help us save towards our retirement, and this it is for a select few, but it is also so much more than that.

The key points of a retirement annuity, other than it being a great tool for setting aside money for retirement, are that:

1)      It helps reduce your tax liability which could result in a tax refund;

2)      Money in a Retirement Annuity is tax free in the sense that all dividends, interest and capital gains are not taxed;

3)      Money in a Retirement Annuity falls outside of your estate;

4)      Some Retirement Annuities are flexible in the sense that you can stop and start your premiums as and when you feel like it

Irrespective of the life stage that you are in, a Retirement Annuity will have a huge benefit for you and the ‘free lunch’ that SARS is offering is to be taken advantage of. At JH Allen we take into account your specific situation and determine how best we can maximize the benefit of a Retirement Annuity.

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