Savings and Growth


In essence, your Retirement Fund forces you to save money, which is invested and will return market related growth.



Saving for your own retirement is one of the easiest decisions to put off. But talk to those retired people who are now enjoying the benefits of their own savings. Generally they'll say that starting regular saving early was one of the best decisions they ever made. Even if your retirement is a long way off, the financial decisions you make today can have a major affect on your lifestyle in the future.

So start planning now!


Tip 1:

Make a plan and review it regularly
Review your plan at least every two years or whenever your financial circumstances change.

Tip 2:
Involve family
They'll be affected by your decisions and will be able to offer knowledge and support.
Tip 3:

Do a budget
You need to know how much your retirement is going to cost.

Managing Debt


Going into debt may allow you to buy a house, afford a car and provide all sorts of benefits, however the interest on debt can become a trap. The debt trap can become an enemy of successful retirement. Just as an example not paying all the required interest on your credit card could potentially cost you millions over you life span – money that you can ill afford to waste. Unleash the power of compound interest
Did you know there’s a powerful tool that can make your savings grow much faster? It’s called compound interest and it works like this: When you save, the bank (or financial institution) adds interest to your savings at regular intervals - for example, every month. If you don't touch the interest, but let it add to your lump sum, then you start to earn interest on your interest as well as on the original amount you saved. This is called compound interest.

Earning interest on your interest can have a powerful impact on your savings.

For example, the table below shows what would happen if you started saving R50 a week when you're twenty and adjusted your savings with inflation (eg if inflation was 2% per annum, you’d save R51 per week). Using an after tax interest rate of 2.5% return, it’s remarkable to see how the power of compound interest makes your savings grow!

Age Capital Interest Total
25 R13,000 R850 R13,850
30 R26,000 R3500 29,500
35 R39,000 R8,200 47,200
40 R52,000 R15,250 R67,250
45 R65,000 R24,900 R89,900
50 R78,000 R37,550 R115,550
55 R91,000 R53,550 R144,550
60 R104,000 R73,400 R177,400


As you can see, the amount of interest you earned went up from R850 over five years to R73,400 even though the interest rate stayed the same. It went up because of the power of compound interest. The longer you leave your money, the more powerful the compound interest effect. So the earlier you start saving, the more you can make. But it’s never too late to start harnessing the power of compound interest. As you can see from the example above, it only takes a couple of years before compound interest makes a noticeable impact on your savings. Compound interest applies to borrowing too. For example, if your monthly credit card repayments don’t cover all the interest charged that month, the unpaid interest will be added to your balance.


Income Continuation Benefit
The Income Continuation Benefit pays employees a regular monthly income should they experience a loss of income as a result of a full or partial inability to perform their occupation.
The benefit pays employees a monthly income until the earlier of their recovery from disability, reaching the specified benefit expiry age, or death.
For the first twelve months, the benefit is only paid if the employee is unable to perform their "own job with their own employer". After that, it will be paid if the employee is unable to perform "their own, or any other occupation", with either their "own or any other employer".
In cases where rehabilitation is possible the insurer will make the Rehabilitation Benefit available.
The employer may select the Claims Escalation Benefit to provide inflation protection of the employee's benefits to a maximum of the core Consumer Price Index (CPI).
The Retirement Fund Contribution Waiver may be selected to provide for either the employer or the employee's monthly retirement fund contributions during the period that the employee is unable to work.
A choice of waiting periods is available.
The benefit payable is 75% of the pensionable salary, subject to the latest Life Offices Association (LOA) scales.

Medical Premium Waiver
This benefit is included as part of the Income Continuation Benefit and ensures that the employee and his/her family's medical scheme contributions are paid, for a one year period, should the employee become disabled.

Capital Disability
This benefit pays a capital amount in the event of the assured being medically impaired to a degree that it affect his/her ability to work. The benefit, and therefore the premiums payable for it, terminates at the benefit expiry age.

Severe Illness
The Severe Illness Benefit provides a lump sum payment if any insured member of the family is diagnosed with one of the defined severe illnesses. This lump sum payment provides the necessary financial assistance to relieve some of the financial worries associated with a life-changing event. The lump sum benefit will be defined as a multiple of salary and expressed as a percentage of the Life Fund or Impairment Fund.
Funeral Cover Benefit
A lump sum benefit is paid to cover the cost of a funeral. Two benefit options are available:

A lump sum benefit equivalent to the selected LIFE FUND amount is paid on the death of an employee based on either: A multiple of annual salary, or
A flat Rand amount. The Life Cover Benefit may also be selected to provide additional benefits to an employee's spouse.

Global Education Protector (DISCOVERY LIFE ONLY)
This benefit is paid in addition to the CORE Life Cover Benefit and is automatically included on a Discovery Group Risk Plan where the CORE Life Cover Benefit has been selected. This benefit is designed to fund the education of the three eldest surviving children on the death of the employee.
Annual payments are made to the education facility to fund the children's education.
The employee's CORE Life Cover Benefit must equal at least twice their annual salary to qualify for this benefit.


Retirement Fund Claims

The only way to cash in your retirement fund is to leave your company in one way or another. When it comes the time to withdraw your retirement benefit the first thing to do is ask your human resource manager or payroll administrator for a termination of service form, fill it out as clearly and accurately as possible. Include your phone number if at all possible; we may need to contact you for more information or to inform you if there’s some kind of problem. If you earned R5000 per month (R60000 per annum) or more we require an income tax reference number, if we don’t have one we need to wait until you obtain such from the receiver of revenue. The authorized HR person at your previous company will need to send the termination form to Tennant Benefit Consultants on your behalf.

Duration of Payment Process
A typical withdrawal from a retirement fund takes on average 4-8 weeks after we receive the exit form and the fund is updated with member's last contributions. (This pertains where all the required information is supplied and there are no problems such as the Receiver of Revenue declining your tax directive

Taxation of Benefit
Pre-retirement retirement fund withdrawals are subject to taxation at your normal rate of income tax, the minimum bracket being 18%. The first R1800 is tax free unless you withdrew from another retirement fund in the same tax year. On retirement from a provident fund you may take your full benefit in cash or transfer it to an annuity which would pay you out on a monthly basis. On a pension fund you may take up to one third of your benefit in cash the remainder must be transferred to an annuity.

Requirements to transfer a benefit:

If you do decide to transfer your benefit we need the following information:

Home Loans

Your retirement fund whilst providing you with a vehicle to save for retirement also provides you with an opportunity to apply for a home loan through the fund. However, this is subject to the rules of the fund allowing the granting of housing loans through the fund.
The rules also stipulate the conditions under which a home loan may be applied for and approved. Generally, the rules stipulate the maximum amount that can be loaned taking into account the value of your share of fund and the tax payable thereon should you exit the fund. The rules put in place ensure that there are sufficient funds to cover the tax liability should you withdraw from the fund. The home loan facility can only be used for the following purposes:
purchasing a property
undertaking alterations to an existing property, provided the alterations are fixed and cannot be removed.

Please Note:

This facility may not be used to fund any other purchase such as buying a motor vehicle, furniture etc.


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    hurlingham office park,
    block a suite 3,
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  • Call:T:011 100 8100

Reg. No. 1981/007316/07 FSP Licence No: 43648