It is becoming more of a reality with every passing year that saving for your retirement is more vital than ever. With the shocking statistic that only 6% of South Africans are saving enough to retire comfortably, one can never take this lightly. This minority of people use different platforms to save for retirement such as a retirement annuity fund, pension fund (salary-employed persons) or fixed term investments, with the intention to retire comfortably.
So, who would have thought that paying your risk insurance premiums would enable you to contribute towards saving for retirement? At PPS, our members with qualifying products have the benefit of saving for retirement through their Profit-Share Account by merely paying their insurance premiums.
The operating profits, including a portion of the premiums paid and the investment growth on that accumulated sum, are shared each year, in the form of allocations to the PPS Profit-Share Accounts of the members. Members have the opportunity to share profits throughout their working lives, as well as into retirement.
The funds become accessible as a unique retirement benefit and can be used to supplement post retirement expenses, settle debt or enhance retirement savings. The PPS Profit-Share Account vests when the member reaches 60 years and is accessible thereafter tax-free. To sum it all up, for being a member of PPS with qualifying products, you will share in all the yearly declared profits, deposited into an account that is fully accessible to you at retirement. That should be regarded as one the smartest ways of saving for retirement.
There are other ways that different insurance companies use to try and match this concept, but is it really the same? Most of these insurance companies will offer some form of CashBack, PayBack and, or Cash-Conversion, which aim to reward participants for not claiming on their benefits, maintaining a certain level of healthy lifestyle or keeping benefits at a certain level for long periods of time. Unlike the PPS Profit-Share Account, the above “rewards” come with certain terms and conditions that when not met, will affect the reward promised.
The amount accumulating in a member’s Profit-Share Account is not subject to claims made on their benefits, health status or other factors. The amount received at retirement will be based on all profits shared.
See how other members have earned the benefits of been with PPS over the years.