I am 59 years old and retired. I took the third allowed from a retirement annuity with Stanlib about about years ago.
I am now in a situation where I desperately need the balance of the fund. I understand that current law does not allow this.
Are there any exceptional circumstances that would allow me access to these funds. It is a small amount of R135 000. Whom do I appeal to?
Anthony Katakuzinos, COO of Stanlib Retail responds.
Without the exact details it would appear you are in a Linked Life Annuity.
A living annuity is a sophisticated personal retirement product that allows a pensioner more financial freedom as to how his funds are invested as well as the percentage and frequency of his income.
The responsibility is placed upon the client and advisor to ensure these funds sustains the client for the remainder of his retirement years.
Should the funds remain within the investment it allows him to pass these assets onto his beneficiaries.
Linked Life Annuities are governed by the Long Term Insurance Act.
Stanlib Wealth Management serves as the administrator of the Linked Life Annuity.
We have to adhere to the legislation as stipulated; we thus have no control over what the law stipulates.
As the Administrators we cannot distribute the balance of the funds unless the value drops below R50 000.
We can suggest, as an alternative, that you approach your local Sars office to make this concession.
You will have to provide Sars with Stanlib's investment details as well as a motivational letter appealing to them for this concession.
This will be addressed with their legal department and once they make a decision we can be notified - that is if the decision is favourable.
In our experience this type of request has not had a favourable response, but this is our only alternative in order to assist.
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