PSG wealth endowment review 2022

The PSG wealth endowment plan is a savings account designed for people who pay more than 30% in taxes. Contributions […]

PSG wealth endowment

The PSG wealth endowment plan is a savings account designed for people who pay more than 30% in taxes. Contributions to the endowment will result in a reduction in one’s income tax liability. Contributions to the PSG wealth endowment account are no exception, as they offer significant tax benefits.

Withdrawals from an endowment account are subject to certain restrictions. If the regulations are followed, however, there will be no fines or taxes imposed on the withdrawn funds. Additionally, the account can be used to avoid paying executor fees.

There are no capital guarantees when investing in the PSG wealth endowment plan. The capital invested will be exposed to the market, in this situation. Account-holders must invest the cash saved in their endowment account in one or more of the PSG wealth investing platform’s investments.

Several instruments and unit trusts are available through the PSG wealth investment platform. The proceeds from making an investment will be determined by an investment return. The account holder is free to transfer funds from one instrument to another.

The PSG endowment investment plan is explained in greater detail below. 

PSG Endowment Summary

PSG wealth endowment is a type of investment that allows you to get immediate tax savings while also investing for the future. Contributions to the PSG wealth endowment can be made on a monthly basis or in one lump sum. The account requires a minimum lump amount of R20,000.00 and a minimum monthly debit order of R500.00.

Other contributions to the account can be made on a regular basis. A minimum contribution of R6,000.00 must be made each year for a yearly debit order. The minimum biannual contribution to the account is R3,000.00. Contributions to the account can also be made on a quarterly basis, with amounts starting at R1,500.00.

Withdrawal restrictions apply to the PSG endowment account. The first restriction is that withdrawals from the account must not be made within the first five years of the initial deposit. However, there is one withdrawal from the account that does not need to be repaid and that can be made within the first 5 years of making the investment.

The PSG wealth endowment account also permits account holders to take out a single loan from the plan. There is no interest charged on the withdrawal. As it is a loan, it must be repaid to the account within a certain time frame.

The 120% criterion must be followed when investing in the PSG wealth endowment investment plan. According to the 120% rule, an investment into the account must not be greater than 20% of one of the greatest contributions made in the previous two years.

Failure to observe this guideline will result in the withdrawal waiting time being extended by four years. If the account holder fails to pay contributions in accordance with the 120 % guideline, a new 5-year term will begin.

How the PSG wealth endowment work

You can apply for the PSG endowment plan online by requesting a callback on the PSG website. A consultant will contact you to start the application. You must specify an amount to contribute to the plan while filling out the application. A lump-sum contribution, debit order payments, or both are options available to fund the plan.

Funds must be deposited into the account after it has been successfully opened. The applicant will have to decide how the funds will be invested after they have been deposited. Under the PSG wealth investment platform, a client will be able to choose from a variety of financial products.

By investing in the PSG wealth investment platform’s investment options, you are putting your money at risk. The capital in the PSG wealth endowment is not guaranteed, and no interest is promised.

The endowment plan will need to be updated to include beneficiaries. Beneficiaries are the people who will get a benefit from the product if the account holder dies. This might be anyone you’d like to benefit from in the event of your death.

The account holder will not have to pay executor fees if they choose the PSG wealth endowment plan. When the account holder dies, the money will become part of his or her estate, and beneficiaries will be entitled to it. When the account holder’s estate is wound up, estate duty must be paid.

The 120 % guideline applies to deposits and must be followed. Contributions can be made in the form of a lump sum or in installments over time. Contributions can also be made monthly, quarterly, biannually, or yearly using a debit order.

Advantages of the PSG wealth endowment 

  • Cancellations are permitted within 31 days of the investment plan’s inception.
  • Since the interest earned is capitalized until it is withdrawn, the money invested accumulates interest at a faster rate.
  • The money placed can be invested in a variety of ways.
  • The product is available to everyone with a South African ID.
  • The endowment plan’s minimum contribution is reasonable.
  • Investing in an endowment can result in tax advantages.
  • The investment vehicles act as a hedge against international investment risk.

Disadvantages of the PSG wealth endowment 

  • Capital that is invested is not guaranteed from loss. 
  • Withdrawals may take a very long time to take place if the 120% rule is not strictly followed. 


PSG wealth endowment is an investment vehicle that can be utilized to take advantage of the product’s tax benefits. In addition, the solution provides a better way to reduce the cost of estate planning. From the earnings that may be made to the costs that can be avoided, the product can do a lot for anyone that wants to save money.