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New Tax Laws-RA

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Super Contributor
Did you know, with the new laws, if you die , say 2 years after retirement, the annuitised portion(two thirds of total RA savings), does not accrue to your dependants, its basically "lost".
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Super Contributor
@Rams, Was never a fan of RA.
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Contributor
Hi Rams, What exactly happens to the money then? Does it belong to the fund? The Government? Who exactly gets this money?
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Super Contributor
goes into the pool, because there will be others who live longer, so your money goes to them.I think this will have implications for estate plannibg. I still have to look at the actual law, but got this info by email from a financial planner.
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Contributor
its seems that the new law is aimed at "maximising estate duty", and keeping the investment companies happy... essentially, everyone needs to buy an annuity. the law also gives no consideration to the average age of south africans... just my take...
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Super Contributor
you will need to qualify this statement because as you have stated it - it is incorrect.
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Valued Contributor
Rams, an annuity always died with you, or at best with you an spouse
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Super Contributor
yes, not many and especially the guy on the street does not know that.
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Contributor
Rams you are referring to a life annuity, if you opt for a living annuity instead then assets remain in your estate, however you then take on the risk of outliving your assets.
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Super Contributor
some annuities have guarantees and payout even if you die.can u use 2 thirds to buy living annuity-if yes then u can nominate beneficiaries to "inherit"
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Occasional Contributor
That annuity is normally guaranteed for the first 10 years - meaning whoever your beneficiary is will definitely get paid for the first 10 years.
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Contributor
You can choose when your RA matures to buy a guaranteed or a living annuity, the guaranteed one pays for the duration of your life whilst the living one stays with your beneficiaries on your death , this has always been the case.
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