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.
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 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. We realised that people needed a fast and uncomplicated way to invest for their retirement, so we built an intuitive digital solution that helps our customers save towards their retirement in less than three minutes, he says. We have the advantage of being able to prepopulate most information required for customers which makes the process more seamless.
2. Offers investment options to suit every need
The 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 on 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 saving and you can do everything from choosing the fund that best suits your goals and naming your beneficiaries who will inherit your money if you pass away, to having 24/7 access to your fund information and performance, and even downloading 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 FNB financial advisor 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.