Earn more on your retirement savings with a preservation fund

These funds are designed to preserve your savings and tax-deduction benefits previously earned by investing in other pension or provident funds.

What is a preservation fund?

A flexible and cost-effective product that provides you with a reliable and transparent way to ensure greater financial independence at retirement age.

Transparency

Clear view into fees, terms and underlying investment holdings.

Flexibility

Simple online application, investment tools, statements and more.

Simplicity

Uncomplicated product features, fees and admin processes.

What can a preservation fund do for you?

The reality is that human temptation gets the better of many, once the lump sum payout from an annuity or other investment becomes available. The worst thing possible is to spend it in the hope of future recovery. Absa Investments' preservation funds help secure your future – and grow your invested capital.

Preserve your benefits

Your investment retains the tax-breaks previously earned.

Access your money

One pre-retirement withdrawal is allowed for your benefit.

Guarantee your income

It’s easy to transition to an income solution during retirement.

What does a preservation fund cost?

Annual fees are calculated on the market value of the units held in the fund. Financial adviser initial and annual review fees are negotiable between you and your chosen financial adviser.

Minimum investment

Minimum lump-sum investment
R25 000
Fees and charges
Initial administration fees
R0

Annual administration fees
First R250 000 – 0,75%
Next R500 000 – 0,50%
Above R750 000 – 0,25%

The annual administration fee is charged per investment portfolio.

An annual processing fee of R200 per client is levied and is deducted pro rata from the investment on a quarterly basis.

An additional retirement fund cost of approximately R30 per product per annum will be deducted. These are fund expenses and are directly related to, for example, annual auditing fees, fidelity insurance cover and trustee remuneration.

All fees quoted are exclusive of VAT, which will be levied where applicable.
Tax implications

The overall maximum tax-free amount of all lump sums, derived by any taxpayer during his/her lifetime as a result of his/her membership of any pension, provident or retirement annuity fund, is subject to certain limits.

In the event of a withdrawal from the fund prior to retirement, R25 000 will be tax free (should this not have been claimed before) as well as any contributions not previously allowed as a tax deduction. The balance will be taxed as per a pre-defined tax table prescribed by SARS.

The tax-free portion of the cash payment, on retirement, is limited to R500 000 per taxpayer. Previous withdrawals and/or retirement from other registered retirement funds, will have an impact on the tax-free portion. The balance of the cash payment will be taxed as per a pre-defined tax table prescribed by SARS. During the term of the investment, no tax is levied on any interest income, net rental income and/or foreign dividends earned within the fund.

Ready to invest?

1. Download our investment application form.

2. Complete the form and gather the required documentation.

3. Fax the documents to 0861 339 265 or email them to AIMScc@absa.co.za

One Investment form for Individuals

One Investment form for Legal Entities

View the terms and conditions.