Your initial transfer of funds into a living annuity is tax-free. You are not taxed on investment returns within the living annuity, but you will pay income tax on income withdrawals.

Any money left in your living annuity is passed on to your nominated beneficiaries. They can choose to receive a lump sum, ongoing income payments or a combination thereof.

Withdrawals are only allowed if the total value of your living annuity falls below R125 000. Otherwise, you can only access your funds through income withdrawals.

You can access investment expertise and a proven performance track record through a selection of PPS Multi-Manager Solutions or third party investment options to suit your goals and risk profile. Whether you’re seeking long-term growth, capital preservation, or a balanced approach, there’s a option designed to meet your needs.

You can adjust your income withdrawals once annually and switch between investment options at any time, without cost, ensuring your investment remains aligned with your financial needs.

The income from a living annuity is not guaranteed and you carry the risk of savings being depleted if markets perform poorly or the level of income you draw is too high.

A life annuity provides a specified guaranteed income for life, but you have no control over the investment and no remaining capital for beneficiaries. A living annuity gives you flexibility in withdrawals and investment choices, with any remaining capital passing to your beneficiaries, but it is not guaranteed that your income will last or that you’ll have remaining capital.

Contributions to a Living Annuity can only be made from proceeds received from registered retirement funds or transfer from another Living Annuity. The minimum lump sum is R165 000.