Two pots will add complexity to the tax treatment of retirement benefit withdrawals
Withdrawals from the savings and retirement pots will be taxed in different ways.
annuities
People’s expenses change in retirement. Shouldn’t their income too?
Conventional wisdom says that living expenses rise uniformly with inflation, so many financial plans are based simply on that. But analysing the spending patterns of retirees shows us that the data tells a different story.
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Retirement funds and salaries are not a refuge from the taxman
Lump sums, monthly annuities and salaries are not off-limits to the long arm of the taxman. Taxpayers who have failed to pay their tax debts in full to the South African Revenue Service […]
Higher tax deductions for pensioners who receive income from more than one source
Many pensioners who received their retirement income from more than one source had lower tax deductions, based on the tables applicable to the individual incomes. This often resulted in tax shortfalls at the […]
FSCA appoints statutory manager for N-e-FG Administrators
The FSCA has appointed a statutory manager for N-e-FG Administrators (Pty) Ltd, saying it is concerned about N-e-FG’s failure to manage the funds it administers responsibly. It is also investigating N-e-FG’s conduct relating […]
How taxing annuities at the fixed PAYE rate will affect pensioners
The latest move by the South African Revenue Service (Sars) to require the withholding of PAYE from annuity payments at an “effective tax rate” as required in directives issued to payers of annuities […]
Retirement fund members can buy a mix of annuities
The Taxation Laws Amendment Act (TLAA) of 2021, which, among things, gives retirement fund members greater flexibility in terms of the type of annuities they can purchase, was promulgated on 19 January. The […]
Big jump in risk policy purchases while lapses fall
More South Africans are realising the value of life cover, with purchases of risk policies up significantly in the first six months of this year, while there has been a marked reduction in […]
Big jump in risk policy purchases while lapses fall
More South Africans are realising the value of life cover, with purchases of risk policies up significantly in the first six months of this year, while there has been a marked reduction in […]
The importance of a robust retirement plan
Now is a good time for retirees to secure a guaranteed income for life. According to retirement income specialist Just, if your retirement savings were invested in balanced funds through the market turmoil […]
Living Annuities and divorce – Supreme Court of Appeal overturns High Court ruling
In 2016 the Johannesburg High Court ruled that a living annuity does not form part of a spouse’s estate for purposes of calculating the accrual claim. This ruling has now been overturned by […]
Temporary relief for pensioners with living annuities – Pros and cons to consider
“…we have expanded access to living annuity funds by allowing (the) individual to adjust the proportion they receive as an annuity income, instead of waiting up to one year until their next contract […]
Provident Fund Annuitisation Legislation
National Treasury has confirmed that the 2016 Revenue Laws Amendment Act, promulgated on 20 May 2016, qualifies provident fund members for a tax deduction on their own contributions ‘without being required to annuitise […]
Living or Guaranteed Annuity?
Patrick Cairns of Moneyweb recently published an article on this question which is particularly relevant in the current climate of expected interest rate increases. Q: I retired last year and invested my capital […]
