Franc Retirement Annuity
Franc's Retirement Annuity (RA) is a long-term investment product designed to help you build wealth for retirement while benefiting from upfront tax deductions today.
Why use a Retirement Annuity?
An RA helps you invest for retirement in a disciplined, tax-efficient way. You get a tax deduction on your contributions (up to certain limits), and your money grows tax-free until retirement. It's best used for:
- Long-term investing (for retirement or future financial freedom)
- Reducing your taxable income now
- Building a retirement fund outside of an employer pension or provident fund
How it works
- You can contribute as much as you want, and up to 27.5% of your taxable income annually (capped at R350,000) can be deducted from your taxable income.
- Your Franc RA is invested in the Sygnia Skeleton Balanced 70 Fund, which is Regulation 28 compliant but has a high exposure to equities.
- Franc's RA product is fully aligned with the new Two-Pot retirement system. Under this system, one-third of your contributions go into a savings pot that you can access once a year (after a minimum of R2,000 has been saved), while the remaining two-thirds are preserved until retirement age (currently 55).
Key features
- Start depositing anytime from R125
- No financial advisor needed
- No hidden fees or deposit lock-in contracts
- Flexible, tax-efficient structure under the Two-Pot system
Contribution and access
- You can contribute whenever you choose: weekly, monthly, or once-off.
- The "savings pot" allows for one withdrawal a year (minimum withdrawal of R2,000).
- The remaining funds are locked until retirement (age 55 or later).
Who it's for
- Anyone wanting to grow their retirement savings independently
- Individuals with no company pension
- Earners looking for tax breaks now and compounding returns later
Franc's RA gives you control, simplicity, and cost transparency, so you can plan your retirement with clarity and confidence.