fbpx

PSG wealth equity-linked living annuity review 2022

A living annuity is a type of financial security that might be useful in retirement. The PSG wealth equity-linked living annuity provides income at retirement and could be critical to one’s financial security. The PSG wealth equity-linked living annuity requires a lump sum commitment from a pension fund, preservation fund, or retirement fund, unlike a retirement annuity, which requires contributions prior to retirement.

Alternatively, a living annuity can be converted to a PSG equity-linked living annuity. The PSG living annuity has a number of benefits that investors can take advantage of. Speaking with a PSG advisor and getting a second opinion will assist you in making informed investment decisions.

The PSG living annuity is designed to assist investors in earning money during retirement, whether from a pension fund, preservation fund, or retirement annuity payout. This money is invested to earn interest on an underlying instrument. Award-winning unit trusts and mutual funds are examples of investment vehicles.

It’s critical to note that investing in a PSG living annuity entails some risk. There is no assurance that the capital investment will pay off. As a result, the amount of money invested can increase or decrease over time. Long-term investments, on the other hand, have shown to increase the principal invested.

The PSG living annuity provides retirees with a yearly income stream, allowing them to supplement their income. The product has its own set of tax implications and functions differently than other PSG savings and investing options. The PSG living annuity is explored in more depth further below.

PSG wealth equity-linked living annuity summary 

The PSG wealth equity-linked living annuity is an annuity that provides an annual income of between 2.50% and 17.50% of the value of your investment. The minimum investment into the PSG wealth equity-linked living annuity is R20,000.00 for any amount above the minimum lump-sum contribution. Monthly contributions are not allowed on this product. 

Only a pension fund, provident fund, preservation fund, or retirement annuity can put money into a living annuity. This is to ensure that retirees have a predetermined income at the start of the program and can get predetermined rates on a constant basis.

Money invested in the PSG wealth equity-linked living annuity can go into a variety of unit trusts, personal share portfolios, and life portfolios. On the PSG wealth investment platform, these investment vehicles are available. To take advantage of market conditions, investors can swap between the underlying investment products at any time.

Investing in the PSG living annuity has tax benefits. Interest generated, dividends paid, and capital gains earned from the underlying instruments of the investment are all tax-free. As a result, the investor will be paid all returns, with no deductions made by SARS.

On the anniversary date of your investment, you can adjust the annual income you want but must exceed the set limits. There will be no adjustments allowed to the income level that was chosen. The income can be paid out on a monthly, quarterly, half-yearly, or annual basis.

How the PSG wealth equity-linked living annuity work

By requesting a callback on the PSG website, you can apply for a PSG wealth equity-linked living annuity. An advisor will be in touch with you to go over the product and explain how it works. The advisor’s session is free, and you can talk about anything relating to the product.

To open an account, you must agree to the terms of service and make a minimum investment of R20,000.00. After that, the account will be activated, and the funds will be available to invest in underlying instruments. Underlying instruments are those under the PSG wealth investment platform. 

Retirement annuities, preservation funds, pension funds, and provident funds are the only savings that can be contributed to the PSG wealth equity-linked living annuity. The account holder determines the number of withdrawals from the living annuity, which varies from 2.50 % to 17.50 %.

The withdrawals from the investment can be changed on the anniversary of the investment. The PSG wealth equity-linked living annuity comes with no capital guarantees. This means that money invested could lose value, and PSG will not be liable for losses caused by an underlying instrument’s performance.

PSG wealth investment vehicles, on the other hand, are known to beat the market, but they can also go in the opposite direction. It’s critical to pick the right number of withdrawals. This will ensure that your investment does not outlive you. Furthermore, the smaller your withdrawal percentage, the more interest you will earn on your investment. 

Advantages of the PSG wealth equity-linked living annuity 

  • When making an investment, you have a variety of underlying instruments to pick from.
  • Depending on one’s needs, income can be withdrawn.
  • When making a withdrawal, you can select from a wide range of time intervals.
  • The application process is simple, and a qualified advisor can assist you.
  • The product allows you to boost the value of a current pension or provident fund payout.
  • The product has a low minimum deposit.

Disadvantages of the PSG wealth equity-linked living annuity 

  • Market performance might cause money to be lost.
  • Regardless of the amount of money invested, growth is not assured.

Conclusion 

For people who have recently received their pension or provident fund payout, the PSG wealth equity-linked living annuity is an excellent option. The product is designed to assist individuals in earning an income from their investment while also allowing the money to grow. Because there are so many instruments to pick from, one can find one that meets his or her financial appetite.

PSG wealth equity-linked living 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]

Scroll to top
%d bloggers like this: