“saving for retirement forms a key part of FNB’s drive to assist customers throughout their money management journey" - Bheki Mkhize

Retirement Annuity on App’ lets you apply in under three minutes

FNB now offers its customers the option of taking out a Retirement Annuity (RA) quicker and easier on the FNB Banking App without having to fill in lengthy forms. In less than three minutes, customers can get a retirement annuity digitally without paying financial advisor commissions or investment processing fees.

The lower fees ensure that more of the customers’ contributions get invested, further boosting their 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 and 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.

Raj Makanjee, CEO of FNB Retail and Private Banking 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.”

Bheki Mkhize, CEO of FNB Wealth and Investments Solutions, says that

“saving for retirement forms a key part of FNB’s drive to assist customers throughout their money management journey. He mentions that 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.” A RA is a tax-efficient investment solution specifically designed to help you save for your retirement. You can make regular monthly payments or a lump sum contribution. You also get a tax deduction on up to 27,5% of your income (to a maximum of R350 000 per tax year) by saving

money in a registered retirement savings fund”

he says.

Mkhize encouraged customers to top up their retirement annuity before the end of February (tax year end) to take advantage of this tax deduction.

“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,”

concludes Mkhize.

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