Allan Gray

Reasons a retirement annuity may not be suitable for you

To ensure that your retirement savings are kept for your retirement, the following legal restrictions apply to all retirement annuities:

• Prescribed legal investment limits restrict how much you can invest in the types of investments that are considered higher risk, for example equities and offshore investments
• You can only access your money after the age of 55, except in certain circumstances
• When you retire you can only withdraw up to one-third of your investment as cash
• The rest must be transferred to a product that can provide you with retirement income

Compare a retirement annuity to investing directly into unit trusts Need to know more? See our frequently asked questions about saving for your retirement

Choose a unit trust that suits your needs

Your investment returns come from the unit trusts you choose You can choose from our simple range of unit trusts and you can change your selection when you need to

When choosing a unit trust, there is a trade-off between higher potential return on the one hand, and stability and lower risk on the other

Remember that your unit trust selection must meet the prescribed legal investment limits

Higher risk & return

Higher potential long-term return

Higher investment risk and fluctuation

Stability & lower risk

Stability and low risk

Lower potential return over time

Potential for higher long-term return However, as there is more significant fluctuation, it may not be suitable for retirement funds

Our flagship long-term unit trust Steady long-term return with moderate fluctuation

Less fluctuation with above-inflation return There may be some fluctuation within a two-year period

Most stability with higher return than bank deposits May not beat inflation over time but is suitable for short-term needs

The Allan Gray Equity Fund

• You want to invest in listed shares for long-term capital growth
• You are comfortable with significant stock market movement
• You accept the possibility of losing capital
• You have at least five years to invest, but preferably longer Can you tolerate significant ups and downs? You must be prepared to wait out years in which you may experience performance that may be significantly better, or significantly worse, than in a balanced fund It is important that you are able to remain invested after a drop, to give your investment time to recover

Look at the long-term return