What are your options for preserving your retirement savings

And reducing the risk that you won’t save enough for retirement?


1
Transfer your money to your new employer’s fund.

  • You won’t pay tax on the transfer, unless you transfer from a pension fund to a provident fund. In that case, the full amount will be taxed.
  • You can take a portion of your fund credit in cash (which is taxable) and transfer the balance tax free.
2
Leave your money in the current fund

  • You will benefit from lower fees.
  • You can withdraw your full fund credit before you retire. If you withdraw only part of your fund credit, the balance must be transferred to another fund.
  • You can’t make additional contributions.

3
Transfer your money to a preservation fund.

  • You don’t pay tax on the money you transfer, unless you transfer from a pension fund to a provident preservation fund.
  • You can make a once-off withdrawal from the preservation fund. This single withdrawal allows you to take all or part of your money in the preservation fund.
  • You can transfer from a preservation fund to a future employer’s fund.
  • You can’t make any additional contributions.
  • The AFRIS preservation fund is available to you. You may benefit from the lower fees.

4
Transfer your money to a retirement annuity fund.

  • Your fund credit is preserved for your retirement.
  • You don’t pay tax on transfer.
  • You can make additional contributions.
  • You can’t withdraw any money until you retire, unless you emigrate.
  • You can take up to one-third of your benefit as cash when you retire.