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RA (Definitions by Alexander Forbes (Fixed Annuity: Option to choose…
RA
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The Living Annuity -income depends on growth of sum of money which depends on markets -risk lies with you
Conventional/fixed-interest annuity -Regular monthly income guaranteed for life (same income every month regardless of inflation) - risk lies with insurer
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Contributions are tax deductable eg if marginal tax rate is 40% and an annual contribution of R30 000 tax saving would be R12 000 for the year.
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Two thirds is in the form of an annuity. if income exceeds threshold them tax is payable on the amounts. refer to sars website for thresholds.