Sanlam Retirement Annuity In South Africa


Sanlam offers you opportunity to start saving for your retirement through annuities.

Start saving for your retirement from R300 per month and receive a bonus for every payment you make – with an additional 5% if you prefer to buy online.

The Sanlam Cumulus Echo Retirement Annuity is the only retirement savings annuity in South Africa that rewards you with an Echo Bonus for every payment you make. The longer you save, the more bonuses you get.

We believe financial advice from an accredited financial planner is a valuable investment in your financial future. However, if you prefer to do your own financial planning, we offer this product on-line.

Buy online and get 5%
additional benefits.

How does the Sanlam Retirement Annuity Echo Bonus work?

The Sanlam Retirement Annuity makes it easy and attractive to start saving for retirement – even with a small amount. It’s the only retirement annuity in South Africa that rewards you with an Echo Bonus for every single payment you make. The more payments you make, the more bonuses you get.

But Echo Bonuses do not need to stop when you retire! You will have an option at retirement to continue your investment without further contributions. At the same time you will be able to draw a regular income. The benefit of this option will allow for a seamless transition from pre- to post-retirement within a product that you are familiar with. You will also continue to earn and grow the Echo Bonus uninterruptedly over the rest of your life.

Your money will be invested in the Satrix Life Time Investment Option. Initially, it invests in a passively managed fund, tracking a basket of indices at a very low investment fee. Six years before your retirement date, your investments are phased into a more conservative fund to protect your savings.

If you’re a parent or legal guardian, you can also apply to start saving in this retirement annuity on behalf of a child.


The example is based on a monthly payment of R1000, taking into account an annual inflation increase of 6% over 25 years. It assumes an investment return of inflation plus 2% after fees.

Additional Echo Bonus: R54 160
This is the additional 5% Echo Bonus that Sanlam will add to your fund value if you buy online.


Echo Bonus: R429 170
This is the Echo Bonus that Sanlam will add to your fund value.


Investment Return: R517 970
This is the investment return on your plan. The fund value is equal to the payments plus the investment return.

Payments: R572 730
This is the total payments made on your Cumulus Echo Retirement Annuity

How Much do I Need to Save for My Retirement?

When you retire, you generally need less income than you had before retirement. This is because some of your expenses (e.g. travelling to work) will fall away. Also, you will pay less tax after 65 (and even less after 75). Depending on your retirement plans, you would need at least 60% of your final pre-tax salary after retirement.
These values are determined using projections based on assumptions about uncertain future outcomes. The assumptions were determined considering the historic relationship between different items.

The actual future values will depend on the actual amounts invested and the experience of the selected underlying portfolios with regards to investment returns, fees and taxes. This will have a major effect on your financial planning and your ability to reach your goals. It is therefore important to review your retirement plan regularly.

If you want to secure your future, Sanlam annuities are the best ways to save your cash-you can save as little as R300,which accumulates to earn you up to R200,000 after your retirement.