Retirement Annuity payment holiday

[marco79]

I have an RA at Investec (Now Ninety One) and am considering requesting a payment holiday for a few months.

Would this be a good idea? Any disadvantages to requesting this?

 

[zerocool2009]

I sm sure you can stop payments and just restart when needed.

It aint debt which you are skipping

 

[Sepeng]

No disadvantages as such, unless you're wasting the cash on stuff (you can define wasting however you want here really) and have a plan on how you're going to start again. And to be clear by start again I don't necessarily mean in the RA again; it could be in any retirement vehicle you choose (property, RA, shares).
But I reckon the only danger is you take the break and the extra cash simply becomes part of your expenses, so you're "saving" without any tangible benefit. Happens all the time to us - car gets paid off and yet we don't see that extra few grand in our bank accounts - gets swallowed up by life.

 

[beefymoocow]

I have an RA at Investec (Now Ninety One) and am considering requesting a payment holiday for a few months.

Would this be a good idea? Any disadvantages to requesting this?

I guess if there isn’t any bonuses attached to the RA. I don’t think there will be. But it’s better safe to ask them.

With discovery I know I’ll get heavily penalized if I reduce my repayments but that’s because I’m getting an insane amount of bonuses/benefits.

 

[Hamster]

I asked for an indefinite payment holiday from Allan Gray. Came to realize that RAs are really good at losing money all by themselves and don’t need me to fund it.

 

[zerocool2009]

I guess if there isn’t any bonuses attached to the RA. I don’t think there will be. But it’s better safe to ask them.

With discovery I know I’ll get heavily penalized if I reduce my repayments but that’s because I’m getting an insane amount of bonuses/benefits.

I got a quote from Discovery many moons back. Asking the broker, does she have it, or will consider to take it out: the reply NO

At that point I scrubbed Discovery out as a RA contender

 

[J-10-M]

I guess if there isn’t any bonuses attached to the RA. I don’t think there will be. But it’s better safe to ask them.

With discovery I know I’ll get heavily penalized if I reduce my repayments but that’s because I’m getting an insane amount of bonuses/benefits.

What bonus or benefits do you get from Discovery?

 

[marco79]

I asked for an indefinite payment holiday from Allan Gray. Came to realize that RAs are really good at losing money all by themselves and don’t need me to fund it.

Is it compulsory to belong to a RA or Pension scheme in South Africa?

 

[Steamy Tom]

Is it compulsory to belong to a RA or Pension scheme in South Africa?

O_O

 

[Hamster]

Is it compulsory to belong to a RA or Pension scheme in South Africa?

No. Your employer can make it compulsory to belong to their pension/provident scheme but that's about it.

 

[Gtx Gaming]

What bonus or benefits do you get from Discovery?

You get up to 15% extra on top monthly contributions, every 5 years you get bonus pay out in cash or to your RA if you have life insurance and few extra stuff.

 

[zerocool2009]

With any bonus structure, ask yourself sho is funding it? You or the investment firm...

 

[Johnatan56]

No. Your employer can make it compulsory to belong to their pension/provident scheme but that's about it.

They can make it compulsory that the benefit they pay gets paid into their scheme*
E.g. my employer matches whatever I put in up to 10% of salary on their side, so I'm still paying in even if the return would be -1%.

You get up to 15% extra on top monthly contributions, every 5 years you get bonus pay out in cash or to your RA if you have life insurance and few extra stuff.

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You'll be paying for that with either higher fees, lock-in, lower returns or that you'll probably fail e.g. vitality health at one point and the returns will diminish quickly.

Would not have an RA where I have to jump through hoops, banking is already enough but only because it's very easy for me to go to the "correct" garage and I don't use cash.

 

[backstreetboy]

Rather do a section 14 transfer to a better, cheaper place like Sygnia, 10x, EasyEquities etc.

 

[beefymoocow]

Invested 150k. So they match about 70% my contributions.

To answer your whose paying. It’s people who join and switch. The people stay till the end gets rewarded. I decided I’m gonna stick to the end. Yes Some of the benefits you have to jump through hoops. But the biggest bonus is fairly straightforward. Which is pay your monthly RA escalating CPI +-2%. And have life insurance.

The eac doesn’t include all the bonuses. So every month the eac goes deeper into negetive.

 

[zerocool2009]

What have I learnt from banking to investing...

The saying goes, if you think about the word “loyalty”, rather get a dog!

 

[DapperDanMan]

I have an RA at Investec (Now Ninety One) and am considering requesting a payment holiday for a few months.

Would this be a good idea? Any disadvantages to requesting this?

If you're now Ninety One you surely must have missed all the updates about the payouts that were due to you at Sixty Five - didn't you get the memo?

Luckily you're about to become a zillionaire if you put in a claim now ...

 

[DapperDanMan]

Rather do a section 14 transfer to a better, cheaper place like Sygnia, 10x, EasyEquities etc.

AFAIK, it is some of Sygnia's products that beat out almost all competitors when it comes to low lifetime-spread admin costs, which translates into more money for you.