Getting a retirement annuity with FNB has never been easier

You can plan for a comfortable retirement with no lengthy forms to fill out, no financial adviser commission fees and in just three minutes with FNB’s new Retirement Annuity on App. 

This new feature on the FNB app allows customers to get a retirement annuity plan digitally, without any investment processing fees. 

A retirement annuity is a tax-efficient investment solution specifically designed to help you save for your retirement. 

The lower fees ensure that more of your contributions get invested, further boosting your retirement savings over time. 

The only cost is the asset management fee that is charged by the investment management company tasked with growing a customer’s investment. 

FNB customers will also earn eBucks rewards points, depending on their investment balance. They get their banking fees paid back in eBucks for taking out a retirement annuity or other investment products, based on their eBucks reward level. 

As a result, customers who use bundled transactional bank accounts don't have to pay platform administration fees on their retirement annuities or other types of products.

FNB retail and private banking CEO Raj Makanjee says: “This is part of our focus to be an integrated financial services provider that is relevant to customers across their transactional, credit, insurance and investment needs. As a result, we are consistently enhancing services on our digital platform to make it easier for customers to manage their money, plan, and track progress towards their long-term goals, such as saving for retirement.

“The fact that the service is available digitally means that it is immediately accessible to millions of South Africans to start or accelerate their retirement savings journey.” 

FNB wealth and investment solutions CEO Bheki Mkhize says that saving for retirement “forms a key part of FNB’s drive to assist customers throughout their money management journey”.

He says it is never too late to start saving for retirement, but people who start much earlier have a better chance of meeting their retirement goals. 

Customers can make regular monthly payments or a lump sum contribution to their retirement annuity. 

Mkhize says customers get a tax deduction on up to 27,5% of their income, to a maximum of R350,000 per tax year,  by saving money in a registered retirement savings fund. 

He encouraged customers to top up their retirement annuity before the end of February, which is the end of the tax year, to take advantage of this tax deduction.

Here’s a look at why the FNB RA on App feature should be your go-to retirement investment solution:

1. It makes saving for retirement quick and easy 

Mkhize says that the RA on App feature was developed in response to feedback from many FNB customers who said they were hesitant to invest in an RA because the process seemed complicated. “FNB realised that people needed a fast and uncomplicated way to invest for their retirement, so FNB built an intuitive digital solution that helps customers save towards their retirement in less than three minutes. FNB has the advantage of being able to prepopulate most information required for customers, which makes the process more seamless,” he says.

2. Offers investment options to suit every need

The RA functionality has five investment options that offer an appropriate balance between risk protection and inflation-linked returns, no matter where you are on your retirement journey. This enables customers to have a range of options that are aligned with the type of retirement they want to achieve, whether it is a new investment or topping up an existing investment. One of the options also includes FNB’s newly launched low-fee Core Balanced Fund.

3. You’re in full control with 24/7 access

From the moment you login to the FNB App and start the process of investing in your FNB Retirement Annuity, you have total control over your retirement savings and you can do everything from choosing the fund that best suits your goals to naming the beneficiaries who will inherit your money if you pass away. You have 24/7 access to your fund information and performance, and are even able to download those all-important tax certificates when the time comes to claim your deduction from Sars. If you need guidance or advice at any point during the in-app process, help from a certified financial adviser is just a click away.

“The introduction of a retirement savings feature on the FNB App follows the introduction of several solutions that are designed to enable customers to not only better manage their money, but also save for a range of needs. Customers can also use the FNB App to buy FNB Exchange Traded Notes (ETNs) that give exposure to global stocks such as Amazon and Tesla. FNB also offers several money management tools that help customers budget and track their spend on a daily and monthly basis with nav>> Money,” says Mkhize.

If you’re an existing FNB customer, you can invest using the RA on App feature right now: 

• Simply login to the FNB App;
• Select My Investments;
• Navigate to Retirement; and
• Select Retirement Annuity and Apply Now. 

Customers can get started with just R300 per month via debit order or R500 per month via other channels. Or you can deposit a lump sum of R5,000 and make additional contributions of R2,000 minimum.

And if you’re not an FNB customer yet, opening an FNB transaction account is quick, easy and cost-effective. After opening the account, you can also enjoy all the benefits of effective retirement annuity investment right at your fingertips.

This article was paid for by FNB.