A Retirement Annuity Fund is a personal and/or group retirement savings vehicle which allows you to save for your retirement in a tax-efficient manner. You may transfer your existing RA to AGM and there will be no penalties, should you wish to transfer your AGM Retirement Annuity Fund benefit to another provider.

You are also able to choose the level of income that you would like to draw from your living annuity. You can choose to draw an income in two different ways:

1. Those that are self-employed.
2. Those that have an irregular income stream and wish to change their contribution rates from time to time.
3. Those that are formally employed and would like to supplement their retirement savings in a tax efficient way.
4. Those who want to make provisions for their dependents.

If you contribute to the Fund, the amount that you will receive at retirement (at any time after age 55) will be an accumulation of your contributions, plus the investment returns achieved on your investment choice, less any fees and charges.

When you retire from the Fund, a maximum of one third of your benefit may be commuted to a cash lump-sum. A portion of the lump-sum will be tax free. The balance of the benefit must be utilised to purchase an annuity from a registered insurer which will provide you with an income during retirement.

You may transfer your existing RA to AGM and there will be no penalties should you wish to transfer your benefit in The Fund to another provider. In the event of your death, the trustees will need to decide on how to apportion your accumulated investment value.

This decision is made at the trustees’ discretion, based on the needs of your dependents and nominated beneficiaries.

Why a Retirement Annuity?

• Offers you a tax-efficient way to save
• Allows you to create liquidity in your estate – your beneficiaries may be paid out straight away on your death instead of the investment being included in your estate when you die (and potentially held up by any delays in finalising the estate)
• Enables your beneficiaries to save on executor fees
• Offers you transparent and easy access to a range of asset managers and investment portfolios of your choice.

An endowment policy is legally required to have a minimum five-year term (also referred to as a restriction period as it restricts the withdrawals you may make from the policy). This applies to:

1. The first five years of the policy, or
2. Five years from the first day of any month during which the ‘120% rule’ takes effect (see below)

The 120% rule takes effect when your contributions in any policy year are greater than 120% of the higher of any of the previous two policy year’s total contributions. The Life Company will accept these contributions into the same policy and extend the restriction period (if you are already in a restriction period) or start a new five-year restriction period on the entire policy.

What can I use the policy for?

If you transfer your benefit from an employer fund into a Preservation Fund then the benefit you will be able to access at retirement (from age 55) will be an accumulation of the transferred benefit(s) plus the investment returns achieved on your investment choice, less any fees and charges. You are not allowed to make regular contributions to a preservation fund but may transfer in benefits that have been accumulated in your previous employers’ retirement funds.

There are two types of preservation funds: pension and provident. Benefits from an employer pension fund can only be transferred to preservation pension funds; benefits from an employer provident fund can be transferred to a preservation provident fund.
The two types of preservation funds differ in terms of the amount of cash (commutation) you can take at retirement. Within a preservation pension fund, you will be entitled to take a maximum of one third of your benefit as a cash lump-sum whilst within a preservation provident fund you will be entitled to take all of the benefit as a cash lump-sum. In both cases, a portion of the lump-sum will be tax free.
The portion of your retirement benefit that is not commuted (taken as cash) must be utilized to purchase an annuity which will provide you with an income during retirement.
You may also transfer your existing preservation fund to an AGM Preservation Fund and there will be no penalties should you wish to transfer your preservation fund from AGM to another provider.

In the event of your death, the trustees will need to decide on how to apportion your accumulated investment value. This decision is made at the trustees’ discretion, based on the needs of your dependents and nominated beneficiaries.

Why should I choose a Preservation Fund?

Introducing our Voluntary Investment Product (VIP), tailored for individuals seeking to save in a diversified portfolio comprising unit trusts and pre-approved alternative investment options. With VIP, you have the flexibility to invest discretionary funds for any desired duration, with the freedom to contribute and withdraw as per the terms of your chosen unit trust or alternative investment.

Enjoy the convenience of generating a regular fixed income from your VIP, with customizable payment frequencies (monthly, quarterly, bi-annually, annually) and the ability to adjust income levels at your discretion. Income received is not subject to upfront taxation, although capital gains may be applicable.

In the unfortunate event of your demise, your estate will receive the remaining investment value as the benefit. VIP offers a dynamic approach to savings, combining flexibility, diversification, and income generation to suit your financial goals and lifestyle needs.

Why A Volantary Investment Product?