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Investec iSelect Preservation Funds
Investec iSelect Preservation Funds are ideal for investors who are looking for a tax efficient way to preserve their retirement savings in the event of:
- Retrenchment
- Resignation
- Dismissal
- The winding up of their employer's retirement fund
If you’re a member of a pension fund you can transfer your benefit to the Investec iSelect Preservation Pension Fund. Similarly, if you are a member of a provident fund, you may transfer your benefit to the Investec iSelect Preservation Provident Fund.
| Investment details | |
| Minimum investment | R50,000 lump sum. |
| Withdrawal benefit | Before retirement, a once-off withdrawal of any amount, subject to tax, is allowed. |
| Retirement benefit | From age 55, members may take up to one-third in cash from the preservation pension fund and up to the full amount in cash from the preservation provident fund, both subject to tax, with any balance available for the purchase of a suitable annuity. |
| Death benefit | A lump sum or an annuity may be elected, subject to the rules of the Fund and any applicable tax. |
| Negotiability | May not be ceded, pledged or negotiated. |
Accessing the investment
Investors may retire from their investment from the age of 55. One withdrawal before retirement up to the full value of the investment may be permitted. If an investor has made a withdrawal, the remainder of the capital can only be accessed on retirement or on death.
In the case of a preservation pension fund, a maximum of one third can be paid out to an investor as a lump sum at retirement. The remainder must be used to purchase an annuity. In the case of a preservation provident fund, the full value may be paid out to investors at retirement. Alternatively, all or part of the proceeds may be used to purchase an annuity.
How much does it cost to invest in an iSelect Preservation Fund?
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