RETIREMENT PLANS PERFORMANCE PROTECTION EFFICIENCY

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1 RETIREMENT PLANS PERFORMANCE PROTECTION EFFICIENCY

2 SAVE FOR RETIREMENT AND PROTECT YOUR INVESTMENT Invest is an award winning provider of investment products in South Africa and is part of the Group. Our investment offering is comprehensive and built on our solid reputation for customer centric innovation, quality and care. Planning now for retirement is an important step towards future financial security. Research shows that many individuals can easily live for 30 years in retirement. To be able to sustain yourself in retirement without relying on your children, family or others for support is an immense challenge that most individuals haven t properly planned for. If you are serious about your future and about maintaining financial independence, it s important to make retirement planning a formal part of your life objectives. Successful retirement planning means that you will have the freedom and control to make your own financial choices. One of the simplest concepts about successful retirement planning is using compound interest to your advantage. This simply means that the earlier you start saving, the faster your money will grow. Starting a dedicated retirement savings plan will help you save over the long term. AT DISCOVERY INVEST, WE OFFER TWO TYPES OF RETIREMENT PLANS: 01 THE CORE RETIREMENT PLAN Is a straight-forward retirement savings product that gives you access to the full range of funds offered by Invest. You also get significant tax advantages because your contributions are tax deductible up to a certain limit and your investment growth is tax free under current South African law. You can choose to make lump sum or recurring contributions with this plan. 02 THE CLASSIC RETIREMENT PLAN Is a more comprehensive retirement savings product. In addition to giving you access to the full range of funds offered by Invest, this plan also gives you specific benefits that can boost the performance of your savings and investments and protect your investment from downward market movements. Speak to your financial adviser to help you decide which plan suits your needs best.

3 HOW OUR RETIREMENT PLANS WORK This table shows you a summary of the benefits you can get with each product. In the next section we explain each benefit in detail. Core Retirement Plan Classic Retirement Plan Contributions allowed Lump sum contributions Recurring contributions Benefits for lump-sum contribution plans Retirement Tax Funder Quartile Performance Protector Target Retirement Date Inflation Protector 100% Escalator Retirement Guarantee 100% Escalator Death Guarantee Early Retirement Disability Protector Pays a boost to your retirement plan to help reduce the effect of tax on your once-off withdrawal at retirement. Protects your investment in Funds from underperformance relative to similar funds. Ensures your investment in Target Retirement Date Funds grows in line with inflation. Protects your investment close to retirement by increasing your Escalator Fund s unit price to the highest unit price it has ever reached while you were invested in it. Guarantees the highest investment value reached by your Escalator Funds if you die. Boosts your investment by up to 20% if you become disabled. Benefits for recurring contribution plans Fee PayBack LifeBooster Contribution Waiver Pays you up to 55% of your yearly administration fees on your recurring Retirement Plan. Offers you risk protection. If you die while invested in your recurring Retirement Plan, we will boost your fund value to ensure that your beneficiaries are protected against possible market down turns. Offers you risk protection for severe illness and disability. If you get very ill or suffer a disability, we will take over your monthly investment contributions and pay them until the end of the investment term, or until you reach 65 or pass away. HOW MUCH YOU NEED TO INVEST If you choose to make a lump sum investment, you must invest a minimum of R Alternatively, you must invest R500 per month or more per month in recurring contributions. You can add to your Retirement Plan through ad hoc investments at any time. Ad hoc investments into your Classic Retirement Plan will result in new policies.

4 HOW WE HELP YOU TO GET THE MOST OUT OF YOUR CLASSIC RETIREMENT PLAN PROTECTING YOUR INVESTMENT FROM FUND UNDERPERFORMANCE Quartile Performance Protector When investing in collective investment schemes, there is a chance that the fund you have chosen may perform worse than other similar funds. The Quartile Performance Protector protects you against the underperformance of a qualifying Fund by boosting the fund s performance if it is not in the top 25% of all funds in its category. You must stay invested in the qualifying Fund for the full five years. If you switch out of the Fund during the five years or withdraw your money, the boost you will receive will be reduced. The amount of the boost depends on the performance quartile that your chosen fund is in over the five years. The performance quartile represents whether the fund s performance is in the bottom 25%, third 25%, second 25% or first 25% of all the funds in the same category (see table below). This table shows the value of the boost that will be paid to you based on the performance quartile of your chosen fund: Funds (the funds that qualify to be on this list may change from time to time) Diversified Income Fund Cautious Balanced Fund Moderate Balanced Fund Balanced Fund Flexible Property Fund Global Balanced Fund of Funds Equity Fund Dynamic Equity Fund Global Equity Feeder Fund Global Value Equity Feeder Fund Boost if fund performance is in the bottom 25% of its sector over five years 4th quartile Boost if fund performance is in the third 25% of its sector over five years 3rd quartile Boost if fund performance is in the second 25% of its sector over five years 2nd quartile 15% 10% 5% 20% 15% 10% Additional boost if you have a qualifying Life Plan and are not in the 1st quartile +10% PREVENTING INFLATION FROM ERODING THE VALUE OF YOUR INVESTMENT Target Retirement Date Inflation Protector To protect the purchasing power of your retirement savings, it is important to ensure that your investment growth keeps pace with inflation. With this benefit, Invest will boost your savings in the Target Retirement Date Funds every five years if your selected fund has underperformed the inflation target, which is based on your age after every five-year period. Age Inflation target Up to 50 CPI + 3% 51 to 60 CPI + 2% Older than 60 CPI + 1% This benefit only applies to investments made into one of our Target Retirement Date Funds and you must remain invested in this fund for the full five years in order to receive a boost to your investment. The size of the boost is limited to 10% of the value of your investment in the fund at the start of the five-year period. LOCK-IN HIGH RETURNS FOR YOUR FUND 100% Escalator Retirement Guarantee As you near retirement, you will be working towards maximising your savings at retirement and will typically take precautions to protect the value of the savings you have already accumulated. We understand how important it is to protect your retirement savings and to prevent your portfolio suffering losses from sudden downward market swings. If you choose to invest in one of Invest s Escalator Funds, you will receive 80% of the highest unit price te fund has ever reached. With the 100% Escalator Retirement Guarantee, you will receive 100% of the highest unit price the fund has ever reached, at retirement, which allows you to protect the full value of your accumulated savings while sharing in good market growth. To receive this benefit, you must be invested in the same Escalator Fund for at least five years prior to retirement. Any money switched into an Escalator Fund within five years of retirement will not qualify for this benefit. REDUCING YOUR FEES Fee PayBack For recurring contribution retirement plans we have developed the Fee PayBack benefit, which gives you a refund of up to 55% on all your Invest yearly administration fees. The refund on your fees will be paid back to you, with growth, at the end of 10 years and every five years thereafter. You will also receive a proportional Fee PayBack on your retirement date. Reductions in your monthly contributions will result in a reduction of the future Fee PayBack payments that you receive. Top40+ Fund The figures are expressed as a percentage of the amount invested at the beginning of each five year period. If you own a Life Plan (life insurance policy offered by Life) and your monthly premium is more than R900 (as at 2015) for the full five years, we will pay you an additional boost of 10% into your qualifying Funds if their five year performance is not in the 1st quartile.

5 REDUCING THE IMPACT OF TAX ON YOUR INVESTMENT The Retirement Tax Funder When you retire, you are allowed to withdraw up to one third of your retirement savings in your Retirement Plan as a lump sum. However, you may have to pay tax on the money you withdraw. The Retirement Tax Funder assists you in funding the tax that you need to pay by boosting your fund value, which effectively makes your withdrawal on one third of your retirement savings tax free. The boost that you get to your investment through this benefit will be paid into your plan at retirement, before you make a lump sum cash withdrawal. We will increase the amount of the boost to allow for any additional tax you will pay on the boost itself. The size of the boost is calculated based on a one third withdrawal from your plan. The following table shows the maximum effective tax-free withdrawal you will be able to take from your retirement plan at retirement due to the boost from the Retirement Tax Funder: Years to retirement 20 or more ( 240 months) R to 20 ( months) R to 15 ( months) R to 10 (0 119 months) R Effective maximum tax-free lump sum withdrawal at retirement due to Retirement Tax Funder We will change the table above from time to time in line with changes to taxation. PROTECTING YOUR INVESTMENT FOR YOUR BENEFICIARIES WHEN YOU DIE 100% Escalator Death Guarantee We understand the importance of your investment decisions and, in the event of an untimely death, we know how important it is to pass on the wealth you have accumulated. If you choose to invest in one of s Escalator Funds, you are guaranteed to receive at least 80% of the highest unit price value the fund has ever reached when you withdraw your money. With the 100% Escalator Death Guarantee this guarantee is pushed up to 100% in the event of your death. This allows you to lock in 100% of the highest unit price value your Escalator Fund has ever reached, protecting your assets if the worst happens. This benefit applies to investments in Escalator Funds and Geared Escalator Funds. Certain exclusions and restrictions may apply to this benefit. Please consult the latest Invest Fact File for details. ENSURE YOUR INVESTMENT CONTINUES GROWING EVEN IF YOU BECOME DISABLED Early Retirement Disability Protector Becoming disabled changes a person s life. Not only does it impact your home and work circumstances, it may also negatively impact your investments and future financial security. You may lose out on future investment growth because you are unable to keep saving due to your disability. The Early Retirement Disability Protector gives you a boost of up to 20% of your fund value if you become disabled. The boost is a tax-free amount that we pay into your plan. To get this boost, your claim must be qualified under Category A or B of the Capital Disability Benefit as defined in the latest Individual Life Plan Guide, but you do not need a Life Plan to qualify for this benefit. This table shows you the percentage boost that will apply based on your category of disability and the number of years before turning 65. Years to age 65 Boost for a Category A disability claim Boost for a Category B disability claim 15 or more ( 180 months) 20% 10% 10 to 15 ( months) 15% 7.5% 5 to 10 ( months) 10% 5% 0 to 5 (< 60 months) 5% 2.5% Certain exclusions and restrictions may apply to this benefit. Please consult the latest Invest Fact File for details. PROTECTING YOUR INVESTMENT IF THE WORST HAPPENS Contribution Waiver Life can change in an instant and you may find yourself sick or disabled and unable to continue contributing to your investment. To prevent you from missing out on muchneeded investment growth at critical times in your life, we have developed the Contribution Waiver, which pays all contributions and automatic contribution increases for you until the end of your recurring contribution Retirement Plan term or until you reach the age of 65. This means that your Retirement Plan can keep growing and you can use your monthly contributions to take care of yourself. To get this benefit, your claim must be qualified under Category A of the Capital Disability Benefit or Severity A of the Severe Illness Benefit, as defined in the latest Individual Life Plan Guide. We use the categories defined in the Life Plan Guide to determine the degree of disability or severity of illness, but you do not need to have a Life Plan. A copy of the latest Life Plan Guide is available at The premium for this benefit is based on a percentage of your Retirement Plan contributions and will be deducted before investing your contributions. This benefit expires at the end of the investment term or on the anniversary of your policy in the year before you turn 65. LifeBooster It is important to consider what would happen to your investment and the wealth that you are creating if you pass away. Your unexpected death could lead to your investment being paid out at a time when it s not beneficial to cash in an investment. The LifeBooster benefit protects your recurring retirement plan by boosting your investment value by as much as 15% at the time of your death, which can help to protect your beneficiaries if they need to cash out the investment at a time when its value is less than expected. The size of your investment boost depends on your Vitality status (Vitality is s wellness programme). The table below shows what percentage you may qualify for based on your Vitality status. Non-Vitality Blue Bronze Silver Gold Diamond LifeBooster 5% 6% 8% 10% 12% 15%

6 IMPORTANT INFORMATION YOU SHOULD KNOW UNDERSTANDING THE FEES YOU NEED TO PAY Any investment or retirement product typically includes initial and annual fees paid to the product provider ( Invest ), your financial adviser and the fund manager. Below is an explanation of the fees that apply to this product. Initial fees Initial fees charged by Invest For lump sum contributions and ad hoc lump sum contributions no initial fees will be charged by Invest. For recurring investments there are two types of structures for you to choose from. Structure 1: an initial fee is deducted from each contribution. This fee is up to 2.32% plus VAT of each contribution and will be shown on your policy schedule. Structure 2: no initial fees will be deducted by Invest. Your choice of Structure 1 or Structure 2 will also influence the annual fees paid to Invest. Initial fee charged by your financial adviser Whether you are making a lump sum or recurring contribution to your plan, you may need to pay an initial fee to your financial adviser for advice relating to your investment. You can negotiate with your financial adviser to determine your initial fee. The maximum that a financial adviser may charge as an initial fee for a lump sum investment is 3% plus VAT. Structure 1: a financial adviser may charge an initial fee of up to 5% plus VAT of your recurring investment. Structure 2: there are no additional fees charged by your financial adviser as these are already included in your annual fee to Invest below. 100% allocation You can choose the 100% allocation option when making a lump sum investment, which means that you avoid the initial fee to your financial adviser being deducted from your investment upfront. The value of the fee is instead increased and paid in monthly instalments over the next five years. However, if you exit your plan within the first five years, unpaid fees resulting from 100% allocation will be charged on your plan. Initial fee charged by your fund manager Some fund managers charge an initial fee for investing in their funds. The initial fee varies between fund managers. The initial fees applicable to each fund can be found on the respective fund factsheets. Please speak to your financial adviser or visit Annual fees Annual fee charged by Invest Invest charges an annual fee for administering your plan, which includes providing quarterly statements on your investment returns, tax certificates at the end of each tax year and other ancillary services. The administration fee is based on the size of your investment. It is an annual fee, which is divided by 12 and deducted from your plan on a monthly basis. The table below shows the annual feest that apply to your plan based on the size of your investment for lump sum investments and recurring investments under Structure 1: Size of your investment First R Next R Next R Next R Over R1 million Annual fee 0.75% plus VAT 0.65% plus VAT 0.60% plus VAT 0.45% plus VAT 0.30% plus VAT The Classic Retirement Plan has been designed with additional features to protect your investment growth. There is an added Protector Premium of 1.2% for these features. For recurring investments under Structure 2, Invest deducts a fee of 3.5% plus VAT per year from your investment. A portion of this fee goes towards paying your financial adviser an upfront fee at the start of your investment as well as ongoing additional payments. Fee PayBack is applicable to Structure 2 only. Annual fee charged by your financial adviser Your financial adviser will typically charge an annual fee for monitoring your investment, executing any instructions from you and providing advice on your choice of funds. You can negotiate with your financial adviser to determine the annual fee you will pay. The maximum that a financial adviser may charge as an annual fee for a lump sum investment or recurring investment under Structure 1 is 1.5% plus VAT. No annual fee is charged by your financial adviser under Structure 2.

7 Annual fee charged by the fund manager Fund managers charge an annual fee for investing in their funds. These fees are priced within the unit price of the fund. Typically, these fees range from 0.50% for a money market-type fund to 3% for an aggressive equity fund. The annual fees that apply to each fund can be obtained from the relevant fund factsheet available on Transaction fees Switch fees Invest allows you four free switches between funds per year. After that, a fee of 0.25% plus VAT of the amount switched is charged (up to a maximum of R500). Please note that switches out of qualifying funds may affect the Classic benefits you receive. Early exit fee For recurring contribution retirement plans under Structure 2, the early exit fee starts at 15% of the fund value, decreasing to 0% over half the term of the policy. The minimum term over which there will be a penalty is five years, and the maximum term is 10 years. This fee will become payable if you reduce or stop your contributions before the end of the investment term or if you transfer out of your Retirement Plan. THE FUNDS YOU MAY CHOOSE Invest offers a wide range of funds, including single manager and multi-manager funds. Your fund selection must comply with Regulation 28, which is a law that ensures retirement savings are not over-exposed to high risk investments. Your financial adviser can provide advice on choosing appropriate funds. THE TAX YOU NEED TO PAY Your contributions towards our Retirement Plans are tax deductible, up to certain limits, and the growth and income earned on your underlying investments is tax free. The limits are determined by your income and other retirement investments you might have. Withdrawals made from your Retirement Plan at retirement will be subject to taxation. WHEN CAN YOU WITHDRAW YOUR MONEY? When you retire, you may withdraw up to one third of your retirement savings from your chosen Retirement Plan. The remainder of your Retirement Plan must be used to buy an annuity that can provide you with an income for the rest of your life. Please note that withdrawals may affect the Classic benefits you receive. WHAT HAPPENS TO YOUR PLAN IF YOU DIE? If you pass away, your retirement benefits will be transferred to your selected dependants, stated beneficiaries or to your estate. The transferring of your benefits will be done in line with legal requirements and the rules of the Fund. If you retire due to ill health before your chosen retirement date, your retirement benefits that have accumulated will be paid to you. WANT TO LEARN MORE? There are different options available under this plan, before taking this product out and during the lifetime of your investment, it is essential that you seek financial advice. Invest can only provide information about this product and service and cannot provide investment advice based on individual circumstances and financial objectives. This brochure is only a summary. Full details about how the product benefits work and the technical details can be found in the latest Retirement Plans Fact File. Descriptions of each investment fund, including charges that apply and other benefits, can be found on the fund s factsheet. All marketing material is available on the Invest website (

8 WHAT NEXT? Once you have chosen your Retirement Plan, you will need to choose the underlying funds that you want to invest in. Your financial adviser will take you through the process of risk profiling and asset allocation and will answer any questions you have about fund selection. After you have chosen your funds with the help of your financial adviser, he or she will help you complete an application form and send it to us. We will send you, or your financial adviser, a policy schedule once the investment into your chosen funds has been made. HOW TO CONTACT US Contact your financial adviser for any investment related queries. Alternatively, you can call us on Our lines are open Monday to Friday from 08:00 to 17:00. Invest 155 West Street Sandton PO Box , Benmore 2010 Contact centre Fax The content of this brochure is intended purely to provide investors with information about Invest, Life Limited and its offered products and services. It should be used for personal and/or educational purposes only. This brochure is provided in good faith and the content is not subject to any express or implied warranties of any kind. hereby authorises the use of the content of this brochure for marketing purposes if the content is used for information purposes only. Any unauthorised use, alteration, dissemination or reproduction of, or out-of-context reference to the information contained in this brochure, or any part thereof, is strictly prohibited. No representation, warranty or claim is made or will be construed from the content of this brochure to the effect that any person benefiting from a policy will, or is likely to realise profits, income, earnings or returns similar to those illustrated in the brochure. Each investor must consult their own financial adviser who must be an authorised financial services provider to advise the investor as to the suitability of the products and funds for the investor s personal investment needs. Life Investment Services Pty (Ltd) is an authorised financial services provider. All the percentages and limits in this brochure are not guaranteed and may be reviewed by from time to time. Copyright Invest All rights reserved IRBE 04/15 GM_32242DI_05/05/15_V2