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Carefree Life Retirement Annuity by Assupol Review 2021

Carefree Life Retirement Annuity is a retirement product from Assupol that allows annuity owners to invest for their retirement through monthly contributions or a once-off lump sum. Contributions start from R180.00 per month for the monthly contribution option. 

The once-off lump sum option is flexible as it allows new members to invest in an amount agreed upon by them and Assupol. You can contribute a lump sum and also make recurring payments to meet your retirement goals. For example, you can contribute a lump sum of R100000.00 and make recurring contributions of R500.00 per month, quarterly, biannually, or whatever the case may be to suit your investment. 

How the Carefree Life Retirement Annuity Works

Carefree Life Retirement Annuity is administered by Assupol retirement and has a board of trustees that administers the retirement investment as a whole. The board of trustees are there to make sure that the goals of the annuity are reached at all times. 

Contribution(s) to the Carefree Life Retirement Annuity are invested in the investment fund of your choice. Investment funds available range from low-risk funds to high-risk funds. Therefore, investing in these funds is subject to your risk appetite. 

Investment funds available normally outperform the outlined inflation rate of 3,5% per annum. However, this may not always be the case as investment funds tend to fluctuate because of numerous facts such as a financial crisis which likely leads to a recession or depression, or a pandemic such as Covid-19. 

Your capital investment might be at risk, however, it is without a doubt that in the long run your retirement investment will bounce back and yield interest. 

By investing in the Assupol Carefree Life Retirement you will only be able to access your money when you reach the age of 55 or if you become disabled. 

This investment has tax benefits measures in place to ensure that you get the most from your retirement savings. By contributing to the Carefree Life Retirement Annuity you will reduce your current income tax. And in the future, you can move your savings to a tax-free savings account to take advantage of tax savings. 

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.

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Lethabo Ntsoane

Lethabo Ntsoane 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 reviews and financial tips.

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