Investment strategy: The 10X Preservation Fund offers only an optimal portfolio. This portfolio is fully diversified across asset classes, securities, countries and currencies and automatically adapts to your age and investment horizon. 10X uses index funds. The trustees determine the distribution of death benefits among the dependants of deceased members in accordance with section 37C of the Pension Fund Act No. 24 of 1956. If the trustees believe that it would not be in the best interests of a minor beneficiary for his or her benefit to be paid to his or her parents or guardian, the benefit may be paid into a registered beneficiary`s fund. The tax due on the payment of your pension fund is calculated as follows: 2. Withdrawal is not advisable, as it is subject to the same tax rate as withdrawing money from a pension fund. 1. The transfer from a pension fund to a maintenance fund is exempt from tax. Disclaimer: We are not affiliated, associated, licensed, approved or affiliated in any way with Sanlam or any of its subsidiaries or affiliates.
The official website of Sanlam can be found in www.sanlam.co.za. The use of brand names and images on this website and/or in related print or video materials is for editorial and descriptive purposes only, and 10X Investments makes no commercial claims to their use or implies sponsorship or endorsement. All product names, logos, trademarks and other trademarks or images displayed or referenced on this website are the property of their respective owners. These brand owners are not affiliated with 10X Investments, our products, services or websites. 4. If you die before your retirement, your money will not form part of your estate, but will be allocated to your dependants by the trustees of the fund in accordance with section 37C of the Pension Funds Act. 1. You cannot continue to deposit as you do with a pension fund. Investment Strategy: You can choose from a wide range of leading mutual funds selected by Sanlam (actively managed and index funds). You can switch between these funds at any time. The first four switches in each plan year are free. A member may request early withdrawal from the Fund (for any transfer to the Fund) at any time prior to the date of retirement, unless prohibited by the rules of the transferring Fund.
After that, a member cannot make further payments until the date of retirement, disability or death. Such a withdrawal is not considered a pension and is taxable under the withdrawal tax table of the Income Tax Act. Source: 10X Investments; Sanlam, www.sanlam.co.za; Information of 28 June 2017. 5. Your fund is not affected if you go into debt or go bankrupt. You`re giving up much of the „magic“ of compound interest, especially if you`re now cashing out 100% of your pension fund. The chart below gives an example of the financial results of three people, Chris, Thandi and Dave, who all lost their jobs and withdrew money from their pension funds. Sherwin Govender, Business Development Manager at Glacier by Sanlam, suggests five things to consider before cashing out your pension fund. 6. You are not obliged to withdraw the fund at the same time as you leave the employment relationship. Type of conservation fund: 10X only offers the Next Generation Conservation Fund (uni).
This gives you the freedom to make a withdrawal before retirement or switch to another provider. You can transfer your withheld retirement assets to another conservation fund, superannuation or employer fund without penalty. A conservation fund is a fund into which benefits from a pension fund may be transferred and received when a member of a pension fund or pension fund terminates (but does not retire) or when a fund is dissolved under section 28 of the Pension Funds Act No. 24 of 1956. There is a maintenance fund to maintain your benefits until you retire. You can only pay your pension fund if you leave the pension fund, i.e. if you resign or lose your job. However, job loss and retirement are two different scenarios: The Sanlam Plus Preservation Fund prioritizes maintaining members` benefits when they leave a pension fund, as it is important to ensure that their retirement benefits are sufficient to earn a sustainable annuity. Type of conservation fund: Sanlam offers two conservation funds: the Cumulous Echo Preserver and the Glacier Preservation Fund. The first is a policy-based AR, which means you can`t make your only withdrawal before retirement or switch to another provider without incurring a change fee. The Glacier version is not policy-based, so you can make your one-time withdrawal or transfer without penalty. The minimum requirement for a new member to join the Fund is a first transfer from an approved fund worth R25,000.
This minimum amount does not apply to subsequent transfers from an authorized fund to the fund. Pension fund benefits can only be transferred to the Sanlam Plus Pension Preservation Fund and pension fund benefits can be transferred to the Sanlam Plus Provident Fund. Minimum contributions: The minimum initial investment is R25,000 (the minimum ad hoc additional investment is R5,000). With the award-winning 8 out of 10X low-cost investment solution, investing is simple and straightforward. The amount you save will only be taxed at the time of withdrawal. The retirement date is 70, but members are allowed to take early retirement – from the age of 55. R100,000 Lump sum R15,000 per additional contribution The appointed manager of the fund is Sanlam Life Insurance Limited.