A retirement annuity is the perfect way for you to save up some cash for your retirement because whatever you put away is tax deductible and you are not permitted any access to the funds until you are retired. Also, should you for some reason, become bankrupt before you retire, your funds will be safe from creditors. This is sometimes seen as investing, because you can put money in whenever you want to, any amount you wish (over a certain amount), and it stays in there until you have one day retired. There are companies that offer an individual contract, but it is all up to you to decide what will work better for you.
It is not really like an insurance plan, as it offers you more freedom when it comes to depositing money, but it is stricter when it comes to withdrawing money from the retirement annuity. As long as you have a steady income, you are able to pay money into the fund for as many years as it takes for you to retire. You don’t have to be working for thirty years before you are able to invest in something like this; it is great for beginners too and investing in this is an easy task. It’s an individual plan that applies to anyone, whether you have a lump sum you want to deposit, or there is a monthly fee you wish to pay, all beginners can benefit from this.
Let’s say you sign a contract that says you have to pay R250 a month into your annuity; you may pay more than that some months, but you can’t pay less. If you’re earning an income, you can look into this retirement as “insurance” for when you retire and see what you can find out about which company to use. A retirement annuity is a great idea for those who need to ensure that they put money away and don’t touch it until they are retired.