Hollard Retirement Annuity Plan

A retirement planning solution that allows you to save for your retirement in a simple and flexible way

About Hollard Retirement Annuity Plan


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Who is it for?

Anyone who wants to save for retirement or complement existing retirement savings from an employer.  

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Minimum investment of

R500 per month or R50 000 lump sum.

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Features & benefits

  • Enjoy tax benefits – a retirement annuity is exempt from Capital Gains Tax, Interest Income tax, and Dividend taxes. Your contributions are also tax-deductible.  Freedom of choice – choose from a range of unit trust funds offered by Hollard and 3rd party Unit trust fund managers.
  • Retire your way – depending on what components forms part of your retirement savings, the following options are available to you:  Retirement Component, Savings Component, Vested Component and Vested Right. See our FAQs for more details.
  • Accessibility: You may make one withdrawal per tax year (i.e. 1 March to 28 Feb) from the Savings Component (Minimum of R2000 applies.) Transparent – retirement planning that’s exempt from estate duty and executor’s fees.
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Simply put

A summarised overview of our Retirement Annuity Plan.

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Explained fully

A detailed document explaining all the rules and process information of our Retirement Annuity Plan.

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Portfolio list

A list of the portfolios available within our Retirement Annuity Plan.

Need to get in touch with us?


Call Hollard Investments on
0860 202 202 or email 
customercare@hollardinvestments.co.za

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Visit our secure online portal to invest now or manage your investments.
 

Additional product resources

Fees and Charges


View our table with the fees charged based on the investment value.  

How to Invest


Follow our easy steps on how you can invest with Hollard Investments.

Frequently Asked Questions


Go to our frequently asked questions to help you with any queries you may have. 

 

Fees and charges

A fee is charged on the total value of all components as follows:
 

Investment Value

Initial Fees (excl. VAT)

Hollard initial administration fee

Initial Fees (excl. VAT)

Transaction fees

Annual Admin Fee

if fully invested in 3rd Party Manager Funds – weighted fee. (excl. VAT)

Annual Admin Fee

if fully invested in Hollard BCI Unit Trust Funds – flat fee (excl. VAT)

From R0.0 to R1 million

0%

0%

0.45%

0.25%

Next R500 000

0%

0%

0.40%

0.25%

Next R500 000

0%

0%

0.35%

0.25%

Thereafter

0%

0%

0.25%

0.25%

    Initial Fees (excl. VAT)

    Hollard initial administration fee

    From R0.0 to R1 million

    0%

    Next R500 000

    0%

    Next R500 000

    0%

    Thereafter

    0%

    Initial Fees (excl. VAT)

    Transaction fees

    From R0.0 to R1 million

    0%

    Next R500 000

    0%

    Next R500 000

    0%

    Thereafter

    0%

    Annual Admin Fee

    if fully invested in 3rd Party Manager Funds – weighted fee. (excl. VAT)

    From R0.0 to R1 million

    0.45%

    Next R500 000

    0.40%

    Next R500 000

    0.35%

    Thereafter

    0.25%

    Annual Admin Fee

    if fully invested in Hollard BCI Unit Trust Funds – flat fee (excl. VAT)

    From R0.0 to R1 million

    0.25%

    Next R500 000

    0.25%

    Next R500 000

    0.25%

    Thereafter

    0.25%

  • Should you not be fully invested in Hollard BCI Unit Trust Funds within your Hollard Retirement Annuity Plan account, the annual administration fee will be calculated proportionally using the two fee scales provided in the table above for the respective portfolios. 
  • Your financial advisor may charge you an initial and ongoing fee. These fees are negotiable between yourself and your advisor. A maximum of 3% (excl.VAT) applies for financial advisor initial fees, and a maximum of 1% per annum (excl.VAT) applies for financial advisor ongoing fees. 
  • For more information, please refer to the Investment Portfolio list.
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Access the Hollard BCI Fund factsheets, latest and historic unit prices, investment insights, and more.

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Find all the forms and documents you’ll need to invest in the Hollard Retirement Annuity Plan here.

 
Invest now by following these easy steps

We will always recommend consulting a qualified financial adviser to guide you in choosing suitable products and portfolios for your specific financial goals and risk tolerance. Comprehensive financial planning goes far beyond choosing a product and encompasses many elements that all work together towards a successful financial outcome.

Ready to invest without the assistance of a financial advisor? Please follow the steps below: 

  1. Decide how much you want to invest and into which Investment Portfolios.
  2. Complete an investment quotation.
  3. Send the completed and signed investment quotation, application form and required documentation to:

Fax: 011 351 3816
Email: customercare@hollardinvestments.co.za 

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Find the best Hollard Investment solution for you. Get an online quotation today. 

 
Frequently asked
questions

What does the Hollard Retirement Annuity Plan provide? 

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The Hollard Retirement Annuity Plan provides a tax-efficient way to save for retirement. It can be taken as an alternative or in addition to your employer pension or provident fund. 

How do I invest in the Hollard Retirement Annuity Plan? 

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You may contribute via both lump sum investments and recurring debit orders. You can invest a once-off contribution at any time and may start, stop, or amend a monthly debit order investment at any time. You may also invest the following retirement fund benefits into the product, subject to the product rules and relevant legislation: 

 

  • A pension or provident fund benefit, which is transferred in the event of your resignation, retrenchment, or dismissal from an employer. 
  • A retirement annuity fund benefit is transferred from another retirement annuity fund. 
  • A pension or provident fund benefit from a pension or provident fund, which has been wound up. 
  • A benefit received as part of a divorce settlement via an approved court order, which the recipient can elect to invest into the Hollard Retirement Annuity Plan. 
     

From 1 September 2024 Contributions will be split two thirds into the Retirement Component and one third into the Savings Component. The Member is not permitted to allocate Contributions contrary to this allocation as required by legislation. When transferring Benefits to the Fund, all components must be transferred together (i.e. no splitting of components is permitted).

What are the underlying portfolios I can invest in?

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You can choose from a range of  Investment Portfolio options. You may select any one or a combination of them and may switch between portfolios at your discretion. It is important for you to monitor and review your investment portfolio selection so that it continues to meet your financial needs.
 

The Fund cautions Members against implementing different investment strategies across components. Collectively the components aim to provide Members with an income in retirement and must be managed as such. Members should consult with theiryour financial advisor in this regard.

What is Regulation 28 and how does it affect my investment? 

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To protect a member’s retirement benefit, the Pension Funds Act contains guidelines that regulate the extent to which a member may invest in certain asset classes. Hollard is required to ensure that your investment complies with these asset exposure limits, which broadly speaking are as follows: 

 

  • 75% exposure to equities. 
  • 50% exposure to non-government debt instruments. 
  • 45% exposure to offshore assets.
  • 25% exposure to property. 

 

Each Investment Portfolio offered to investors in the Hollard Retirement Annuity Plan complies with the Regulation 28 limits.  

Can I make additional contributions to my investment? 

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Yes, additional contributions can be added to the investment at any time via Lump sum or debit order. Your debit order can start, stop, or be amended at any time. 

Can I withdraw from my investment? 

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Monies from the Savings Component should only be withdrawn when you find yourself in financial distress or in emergency circumstances. Withdrawing from this component will reduce your ability to earn the required income in retirement and should be avoided as far as possible. The Fund cautions against this practice and would encourage you to preserve the amount in the Savings Component until retirement.
 

The following Withdrawal exceptions apply:
 

  • Should the total value across all components be less than R15 000, a full withdrawal before retirement is permitted.
  • Members may withdraw from the Vested Component, Vested Right and Retirement Component when the Member:
    • Ceases to be tax resident for an uninterrupted period of 3 years; or
    • Departs from South Africa at the expiry of a work visa, or
    • Where the Member filed their financial emigration on or before 28 February 2021 and approved by the South African Reserve Bank or an authorised dealer in foreign exchange on or before 28 February 2022.

What are the tax implications of this investment? 

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  • Contributions: Contributions made to a retirement annuity fund are tax-deductible up to a legislated maximum and must be declared on your tax return. 
  • Payments: Income tax will be deducted from any benefit taken in cash before it is paid out on any pre-retirement withdrawals; retirement; or death, per Income tax legislation. Hollard will apply for a tax directive to facilitate this process.

  • Investment returns are not subject to Capital Gains Tax, Interest Income tax or Dividend taxes.

When can I retire and take my retirement benefit? 

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You may request to retire from the Fund once you have reached the age of 55. You may request an early retirement in the event of permanent disability due to ill-health. Early retirement requests are granted at the sole discretion of the Trustees of the Fund. 

What happens when I retire? 

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Depending on what components forms part of your retirement savings, the following options are available to you:
 

  • Retirement Component:The full value must be used to purchase a compulsory annuity from an insurer.
  • Savings Component: The full value can be withdrawn in cash, and any amount not withdrawn must be used to purchase a compulsory annuity from an insurer.
  • Vested Component: One-third of the value may be withdrawn in cash, with two-thirds being used to purchase a compulsory annuity from an insurer. Any amount not withdrawn must be used to purchase a compulsory annuity from an insurer.
  • Vested Right: The full value can be withdrawn in cash, and any amount not withdrawn must be used to purchase a compulsory annuity from an insurer.

Do I need a financial advisor to invest in this product? 

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It’s not required but we highly recommend that you appoint a financial advisor to assist you. Hollard Investments in their capacity as the Administrator don’t provide financial advice and may only supply factual or administrative information relating to the investment products and portfolios. 

What happens if I pass away?

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Hollard Investments will allocate any benefit due to the nominated beneficiaries as specified in the policy. Should there be no beneficiaries on record, any benefit will be paid to the deceased estate of the investor. The benefit due on the death of the investor is the value of the investment at the time of processing the death claim, less any fees and charges. Each beneficiary who has been awarded a portion of the death benefit will be provided with the benefit in one of the following ways: 

 

  • The purchase of a compulsory annuity from Hollard Life or another registered long-term insurer.
  • A cash lump sum pay-out. 
  • A combination of compulsory annuity purchase and a cash payout.
  • The purchase of an accelerated annuity is to be paid over a minimum term of 5 years. For minors, the minimum term will be the greater of 5 years or the number of years to the age of 18. Any benefits taken in cash will be subject to income tax.

Do I need a financial advisor to invest in this product?

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Hollard Investments, in their capacity as the administrator and the manager, doesn’t provide financial advice and may only supply factual or administrative information relating to the investment products and portfolios.

Why invest with 
Hollard Investments?

Hollard Investments is a part of the privately-owned Hollard Group. Through partnerships and by enabling our clients to create and secure better futures we achieve what is at the core of Hollard Investments’ purpose. We strive for a more efficient and accessible way for your money to get you to where you want to be. We are committed to shared success with financial advisors and investors. We’ve got this, together. 

Have some questions or looking for further insight?


Send us your details and we will give you a call.

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