If you cashed your pension in to pay off your bond make sure you replace it over time.
Sego writes: I have R100 000 from my pension fund which I cashed out last year. I am 30 years old and have a retirement annuity which I took out recently. Should I use the R100 000 to pay into my mortgage bond?
Maya replies: It’s a pity that you cashed in your pension fund as you have now paid tax on the amount and you have less money to retire on.
In terms of replacing your retirement funds make sure you increase your monthly retirement funding to 15% of your current income. If you continue to maintain that level you should have sufficient income for retirement at age 65.
If you don’t have any expensive short-term debt then it makes sense to put the money into your mortgage. The key is to continue to repay the same monthly installments that you currently pay – that way you will settle the bond quickly.
WHy people cannot be allowed to pay off their mortgage bond using their pension money?. I think it could be a good idea to ease the pressure of debts
from employees regarding this ailing economy of us. Again it will be a wise investment for the future because the value of a property increase.It will be unwise for employees to resign on their work because of huge debts upon their shoulders when other options could be used as an intervention.
I hope this governtment could listen and understand our plight as employees of this country.
Employees are over debted and many decide to retire before time to cash their pensions and to pay off debts. Why govertment does not allow employees to use their pension money to pay off their investments like mortgage bonds to relieve their over-debtness?. By so doing we are going to reduce the influx of employees who decide to resign or retire before time because they are deep in bebts.
That has been one of the reasons behind the introduction of the Two Pot System