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Assupol Carefree Life Retirement Annuity Review 2022

Assupol’s Carefree Life Retirement Annuity is a retirement product that allows annuity owners to save for their retirement through monthly contributions or a lump sum payment. Contributions for the monthly contribution option begin at R180.00 per month. The once-off lump payment option is adaptable since it allows new members to contribute in an amount agreed upon by themselves and Assupol.

To reach your retirement goals, you can contribute a single sum as well as make periodic contributions. For example, you might make a one-time gift of R100,000.00 and then make recurring contributions of R500.00 each month, quarterly, biannually, or whatever works best for your investment.

How the Carefree Life Retirement Annuity Works

Assupol Retirement manages the Carefree Life Retirement Annuity and has a board of trustees that oversees the retirement investment as a whole. The board of trustees is responsible for ensuring that the annuity’s objectives are met at all times. Contributions to the Carefree Life Retirement Annuity are invested in a fund of your choice. There are a variety of investment funds accessible, ranging from low-risk to high-risk.

As a result, investing in these funds is contingent on your risk tolerance. Generally, available investment funds outperform the indicated inflation rate of 3.5 percent per year. However, this is not always the case because investment funds fluctuate due to a variety of factors such as a financial crisis, which may lead to a recession or depression, or a pandemic such as Covid-19.

Your capital investment may be at risk, but there is little question that in the long run, your retirement investment will recover and earn interest. If you invest in the Assupol Carefree Life Retirement, you will be able to access your money only when you reach the age of 55 or become handicapped. This investment has tax incentives to ensure that you get the most out of your retirement savings.

You can minimize your current income tax by contributing to the Carefree Life Retirement Annuity. In the future, you can transfer your funds to a tax-free savings account to benefit from tax breaks.

Carefree Life Retirement Annuity Highlights

The Assupol Carefree Life Retirement Annuity comes with a number of benefits that aim at improving your financial situation today and for the future. There are, however, terms that one has to adhere to when investing in this retirement package. Suffering from a disability is one of the most unfortunate events in one’s life. You will need to have a regular income that will ensure you are well-taken care of during such hard times.

Carefree Life Retirement Annuity ensures its members that they won’t be required to pay any further premiums should they become disabled. Furthermore, as a member, you can access your capital plus interest to improve your life in disability. Assupol has a wide range of investment funds available to invest in using different benchmarks. Most of the funds available are award-winning investment funds such as the Allan Gray Stable Fund.

Your investment is highly protected most of the time as Assupol has some of the most trusted investment managers at their disposal. The most sought after benefit is the retirement annuity reward boost, that boosts your maturity value. This boost only applies if you have a Progress Legacy Plan. You can get a boost of up to 100% of your maturity value with this benefit. 

Tax Benefits 

Like any other retirement administrator, Assupol wants to make sure that its members get countless tax benefits as possible. To ensure that members of the Carefree Life Retirement Annuity get the most tax benefits, Assupol has put emphasis on two tax benefits. 

The first tax benefit that you will enjoy is the personal income tax benefit. That is you will enjoy tax benefits through your taxable income. For example, if you earn R12000.00 gross income per month and contribute R500.00 per month to the Carefree Life Retirement Annuity, the R500.00 that you contribute towards your retirement will qualify as a deduction to your taxable income. Therefore, your taxable income will be R11500.00 instead of R12000.00.

The second tax benefit is in transferring your existing retirement fund to a tax-free savings account. By transferring your investment to a tax-free savings account you will enjoy all the interest that your capital earns you over time. This is because the tax-free savings account doesn’t have tax attached to it. 

On retirement, income that you earn is subject to tax, however, the income will be taxed using the income tax brackets for pensioners. You need to be over the age of 65 to benefit from such tax exemptions. 

Competitive Advantages of the Carefree Life Retirement Annuity 

  • Comes with tax benefits that reduce your personal income tax at present. 
  • If you become disabled, you can access your retirement savings without receiving any penalties. 
  • Your retirement savings are protected from debtors since you cannot attach your retirement savings as collateral. 
  • You get to choose where your money gets invested through a number of investment funds. 
  • If you are a Progress Legacy Plan holder, you get a reward boost on your retirement annuity at maturity. 
  • Contributions are paused if you get disabled. 
  • You can start investing from as little as R180.00.

Competitive Disadvantages of the Carefree Life Retirement Annuity 

  • You cannot access your retirement savings at any time like you would do with the Sanlam’s Cumulus Echo Retirement Plan
  • Since the minimum allowed investment is low, there is a high chance that your investment won’t reach your financial needs at retirement if you choose to invest a low amount. 

Conclusion 

Assupol Carefree Life Retirement Annuity is an annuity product that is ‘available to anyone’. The words ‘available to anyone’  might not be literally written down but they are demonstrated in the company’s minimum contribution of R180.00 of which low-income earners can afford. 

One can conclude that the Carefree Life Retirement Annuity is for the people. The annuity product has many benefits that start immediately when you start making contributions. This product is highly recommended for anyone seeking to invest for their retirement.

Assupol Carefree Life Retirement Annuity Review 2022

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at [email protected]

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