The Altvest
Retirement Annuity
What is the Altvest Retirement Annuity (“ARA”)?
The Altvest Retirement Annuity (“ARA”) is a retirement fund that combines access to low-cost passive equity, fixed income, and cash ETFs with Altvest Capital’s diversified range of Alternative Investments. It is fully compliant with Regulation 28, tax efficient and managed by 27four Asset Managers.
ARA suitability
ARA is suitable for:
1. Those that are self-employed;
2. Those that have an irregular income stream and wish to
change their contribution rates from time to time;
3. Those that are formally employed and would like to
supplement their retirement savings in a tax efficient way.
4. Those that want to make provision for their dependents
Supporting documents
The ARA is suitable for:
1. Those that are self-employed;
2. Those that have an irregular income stream and wish to
change their contribution rates from time to time;
3. Those that are formally employed and would like to
supplement their retirement savings in a tax efficient way.
4. Those that want to make provision for their dependents
If you contribute to the ARA, the amount that you will receive at retirement (at any time after age 55) will
be an accumulation of your contributions, plus the investment returns achieved on your investment choice,
less any fees and charges.
When you retire from the ARA, a maximum of one third of your benefit may be taken as a cash lump-sum. A
portion of the lump-sum will be tax free. The balance of the benefit must be utilised to purchase an annuity
from a registered insurer which will provide you with an income during retirement.
You may transfer your existing RA to the Altvest Retirement Annuity Fund. There will be no penalties should
you wish to transfer your Altvest Retirement Annuity to another provider. In the event of your death, the
trustees will need to decide on how to apportion your accumulated investment value. This decision is made
at the trustees’ discretion, based on the needs of your dependents and nominated beneficiaries. A portion
of your assets will be directed towards South African Businesses, providing them with much needed capital
to grow their business and employ more people. You also get access to opportunities previously reserved for
the top 1% of society. Your retirement savings are being put to work in a positive way, impacting the lives of
all South Africans.
Why should I choose the Altvest Retirement Annuity Fund?
The ARA provides you with a tax-efficient, low cost, flexible retirement savings product which is easy to
understand. The contributions that you make to the ARA will be tax-deductible on an annual basis as follows:
• Up to 27.5% of your taxable income is allowed as a tax deduction; or
• A maximum of R350 000 per annum in aggregate;
Why should I choose the Altvest Retirement Annuity Fund?
The ARA provides you with a tax-efficient, low cost, flexible retirement savings product which is easy to
understand. The contributions that you make to the ARA will be tax-deductible on an annual basis as follows:
• Up to 27.5% of your taxable income is allowed as a tax deduction; or
• A maximum of R350 000 per annum in aggregate;
Not only are the contributions to the RA deductible in your hands, but income, capital gains and dividends
generated from the investments are exempt from taxation. The ARA is flexible and you are able to make an
initial lump-sum contribution as well as making on-going contributions by debit order. This option allows you
to make changes to your contribution rates as well as to suspend contributions if necessary.
The ARA will give you access to a range of investment options with exposure to a balanced portfolio and a
range of alternative investments through Altvest Capital.
Your money will be invested in a Regulation 28 compliant portfolio, spread across a diverse set of asset
classes, including a 20% allocation to Alternative assets curated by Altvest Capital. The portfolio is
professionally managed by 27 Four Asset Managers. Please refer to the portfolio fact sheet, available at
www.altvestsecurities.co.za
Altvest Capital seeks to provide retail investors with exposure to alternative investment opportunities in a
safe and regulated environment. Cape Town Stock Exchange (www.ctexchange.co.za) provides a regulated
cost-effective exchange for listing instruments. AltVest aims to provide investors with an opportunity to:
• seamlessly acquire these assets in the primary market;
• enjoy the liquidity of their investment in the secondary market;
• perform real-time valuations on their portfolio;
• access private investment opportunities in a cost-efficient manner; and
• invest in a regulated exchange environment with transparent price discovery.
Where is my money invested?
Where is my money invested?
The investment management costs are shown in the ARA fact sheet of the relevant investment option.
What is it going to cost me?
What is it going to cost me?
You will pay an on-going fee which depends on the size
of your investment. All fees are quoted as a percentage
of assets excluding VAT, under management on an
annual basis:
Administration fee
Investment administration fee
Asset management fee
0.30%
0.10%
0.60%
Cost before advisory fees
1.00%
You will pay an on-going fee which depends on the size
of your investment. All fees are quoted as a percentage
of assets excluding VAT, under management on an
annual basis:
Administration fee 0.30%
Investment administration fee 0.10%
Asset management fee 0.60%
Cost before advisory fees 1.00%
Is this a tax-efficient product?
Is this a tax-efficient product?
Yes, your contributions are tax deductible for the purposes of calculating your tax payable. For example, if you earn R100,000 and contribute R10,000 into your RA during the year, you are only taxed on the remaining R90,000 (excluding other taxes), However, the total amount of tax deductions claimed in respect of retirement annuity contributions is limited to the lower of 27.5% of your income and R350,000 per annum. Retirement annuities are also exempt from tax on dividends and interest, and no capital gains tax is payable on the growth of your investment.
What happens in the event of my death?
What happens in the event of my death?
The distribution of the fund is governed by Section 37 of the Pension Funds Act. This means that any person who is financially dependent on you at the time of your death will be provided for. As these funds are directly distributed to financial dependents, the funds in your A will be exempt from your deceased estate and will result in savings on estate duties.
I already have an RA; how do I switch?
I already have an RA; how do I switch?
You can transfer your existing retirement annuity to the Altest Retirement Annuity by contacting our dedicated team, who are on hand to walk you through the entire process. For further assistance email: retirement@altvestcapital.co.za
I need more information, who do I contact?
I need more information, who do I contact?
If you have any questions, concerns or would like to better understand this product, feel free to contact the team at retirement@altvestcapital.co.za or visit our website at altvestcapital.co.za.
What do I need to do to get started?
What do I need to do to get started?
1. Complete the Altvest application form available at www.altvestsecurities.co.za
2. Obtain a quotation by sending a request email to altvest@altvestsecurities.co.za
3. Compile the following supporting documentation:
• ID document containing a photo, full names, date of birth and ID number, valid
passport or a valid driver’s license
• A document less than 3 months old containing residential address that is a utility bill,
bank statement, rates account or tax invoice
• Proof of banking details
• Proof of tax number
What do I need to do to get started?
What do I need to do to get started?
Altvest Capital, the sponsor of the ARA will
communicate with you and provide you with
the following via email:
1. A transaction confirmation statement
and a policy document
2. Provide you with online access
3. Annual benefit statements
How can I get help?
If any of the above is not clear, you can obtain
further information from Altvest Capital:
Email: altvest@altvestsecurities.co.za
Website: www.altvestsecurities.co.za
Disclosure
The Lifecycle Retirement Annuity Fund is registered with the Financial Services Board (“FSB”) – Registration number 12/8/38158, and approved by the South African Revenue Services
(“SARS”). The Fund is established by the Sponsor, LifeCycle (Pty) Ltd, Reg No 2018/629597/07. The Funds are administered by an administrator chosen by the Funds’ Trustees from
time to time. The current benefit administrator of the Funds is D and D The Cycle (Pty) Ltd, Reg. No. 2013/157477/07. D and D the Cycle (Pty) LTd is an approved fund administrator
and authorised Financial Services Provider. The current investment options available to the members of the Funds selected pooled investments underwritten by 27four Life Limited
(Pty) Ltd Reg. No. This guide has been compiled to provide factual information on the product offered and does not constitute advice.
Read the terms and conditions for the Altvest retirement annuity here
