Allan Gray Living Retirement Annuity is a retirement product for individuals who are 18 years or older. The product requires a minimum lump sum contribution of R125,000.00.
The sum contributed to an Allan Gray living annuity can be used to invest in one of the company’s unit trusts. Allan Gray Stable Fund, Allan Gray Equity Fund, Allan Gray Money Market Fund, and Allan Gray Balanced Fund are among the unit trusts offered by Allan Gray. An investment can be made in one or more of the various unit trusts.
The Allan Gray living annuity has a number of withdrawal restrictions that must be adhered to. One of them is a yearly withdrawal limit of 2.5% of the investment portfolio. The maximum annual withdrawal is set at 17.50% of the value of the investment. This limit exists to ensure that the funds of investors do not run out too quickly.
Regulation 28 of the Pension Funds Act applies to the Allan Gray living annuity. 75 % or less of the money can be invested in shares, 25 % or less in property, and 45% or less of the funds can be invested in foreign assets. With these parameters, it may be required to invest in more than one unit trust.
To begin investing in an Allan Gray living annuity, you must make a lump sum payment to the account. However, a request for an account must be made. You can apply for an account on the Allan Gray website. It only takes a few minutes to complete the application, and it may be done totally online.
Following the submission of an application, the applicant will be contacted to complete the process. The account will then be opened, and a minimum contribution of R125,000.00 will be required. This contribution must be made in one lump sum since piecemeal contributions will not be accepted.
The cash deposited to the account will subsequently be distributed to the unit trust that the applicant has chosen. Contributions to unit trusts will be apportioned according to the applicant’s desire. It is possible to transfer funds from one unit trust to another without paying any fees.
The funds in the living annuity account are immediately available. Withdrawals, on the other hand, can be done monthly, quarterly, biannually, or annually. The maximum annual withdrawal from the account is 17.50% of the investment’s value.
Beneficiaries will have to be listed on the Allan Gray living annuity. Beneficiaries will be those that get to benefit from the investment should the account holder outlive his/her savings. The money in the account will be shared amongst the named beneficiaries.
Those who contribute to the Allan Gray living annuity will get a consistent income. If you invest and withdraw money in a calculated manner, your money can last a lifetime. To keep a living annuity going, one must aim for long-term capital growth and keep withdrawals to a minimum.
You should consult with an advisor before making a contribution or opening an account. There are other calculations to be made, such as the investment’s future value, and so on. As a result, a financial advisor will be able to assist you.
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