Wealth management and investment advisory

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+27 11 268 1282

Bayswater Capital Head Office
Unit 4, Ground Floor,
Commerce Square
Rivonia Road
Sandhurst, 2194

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Preservation Fund

Upfront investments from R50,000

What is a preservation fund?

A preservation fund, like an RA, is a retirement fund in terms of the Pension Funds Act. Preservation funds are designed for individuals who want to invest the proceeds of their pension or provident funds in a tax efficient manner.

Proceeds of company-sponsored retirement plans can be transferred to a preservation fund in the event of dismissal, retrenchment, or resignation. This allows your savings as well as the tax benefits of your retirement plans to be preserved.

How does a preservation fund work?

The primary objective of preservation funds is to preserve sufficient wealth to sustain you after retirement. Failure to preserve your wealth will result in a decrease in current savings as well as the potential returns these savings can produce.

Prior to the age of 55 one partial or full withdrawal can be made from your preservation fund. After this, the balance of the preservation fund can only be accessed at retirement or after the age of 55. Withdrawal from your preservation fund is subject to withdrawal tax.

What are the benefits of a preservation fund?

Preservation funds have the same tax-benefits as retirement annuities and have a variety of investment options. Some, or all your money can be withdrawn prior to retirement and the investment will be safe in the case of debt bankruptcy. Withdrawals are subject to lump-sum tax, but no capital gains tax are applied.

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    Bayswater Capital is a Preservation Fund Specialist

    An effective approach to investing in your future is through a preservation fund. However, you must minimise expenses, maximise returns, and draw a sustainable income if you want to maintain your lifestyle using a preservation fund. Our living annuity specialists make every effort to provide for your needs.

    We are a well-established preservation fund specialist trusted by high-net-worth and family office clients for our client-specific solutions. As your dedicated investment partner, we will work closely with you to develop bespoke preservation fund solutions and innovative investment ideas that preserve your wealth and guide you to lasting financial well-being.

    Bayswater Capital is a well-established niche player in the financial services sector. We have a strong focus on personal relationships coupled with insightful strategies that enables us to help clients make the best financial decisions around preservation funds to protect their wealth in the long term.

    We hope to build long-lasting relationships with our clients that can add value to them across all facets of their financial lives.

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