This refers to additional contributions (after the mandatory deductions) from your salary to your RSA where your regular pension contribution will not be sufficient to meet your personal retirement goals. The funds will be invested alongside the mandatory contributions in your RSA, thereby ensuring that your money works harder for you.
Making voluntary contributions is easy as all you need to do is
- Determine an amount that is convenient for you to contribute in addition to your mandatory monthly contributions.
- Notify your employer to deduct the pre-determined amount from your salary and include the value in the amount to be remitted to our Custodian.
- The Employer should ensure that the Voluntary Contribution is indicated on the Contribution schedule which is to be sent to our Custodian.
Benefits of Voluntary Contributions
- Voluntary Contributions are deducted from your total emolument before tax is applied; hence the contribution is Tax Exempt.
- Voluntary Contributions are flexible such that the amount to be contributed, the periodicity of contributions and withdrawals are determined by the RSA Holder.
- Voluntary Contributions can be withdrawn at the discretion of the RSA Holder. Withdrawal after 5 years of a contribution is tax exempt however, withdrawal within 5 years is subject to tax on income earned