What Retirement Benefits Counselling would mean to retirement fund members and the financial advice industry. For years I have been calling on the retirement fund industry to provide financial education to their members. This is a...
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GEPF changes benefits for children and divorcees
Children of GEPF members are the biggest winners in the improvement to benefits. One of the more frequent questions we receive from members of the Government Employee Pension Fund (GEPF) relates to the treatment of their pension fund on divorce....
New search engine for unclaimed benefits
Over R42 billion of retirement money remains unclaimed, which – according to the Financial Sector Conduct Authority (FSCA) – accounts for 1.8% of all retirement money. Over the last few years, efforts have been made by administrators of retirement...
Government employees are not affected by retirement reform
The Government Employees Pension Fund (GEPF) has issued a notice to members and pensioners that the new Taxation Laws Amendment Act will not affect their pensions or benefits. As a defined-benefit pension fund, the benefits of the GEPF are already...
High income earners’ retirement reform conundrum
With retirement legislation set to change from 1 March 2016, high-earning executives with annual salaries above R1.27 million who are pension and provident fund members, may be affected by the newly introduced annual contribution cap of R350Â 000....
How much tax will I pay if I cash in my pension?
Willie writes: I am planning on leaving my employer after 25 years and I want to cash in my pension fund of R2.1 million. How much tax will I pay? I am 50 years old. Maya replies: When you resign and cash in your pension, the tax is worked out on a...
Retirement reform going ahead
By Vickie Lange, Institutional Best Practice Specialist at Alexander Forbes Last year the tax changes to all retirement funds and the retirement benefit changes to provident funds (together known as T-day changes) which were originally scheduled...
Government Employees Pension Fund adopts clean-break principle
Six years after the clean-break principle was introduced into legislation in 2009, the Government Employees Pension Fund (GEPF) has introduced the principle allowing the non-member spouses of pension-fund members to access their share of pension...
Saving for retirement
In Episode 5 of Change in your Pocket, we look at the various options available when it comes to saving money for your retirement. https://youtu.be/UIyKKLfYcyo – Video supplied by BrightRock Welcome to The Change Exchange, where we are helping you...
Using your pension to secure a home loan
A pension fund is usually the largest asset owned by an individual and it makes sense that it could be used to provide collateral for a home loan, especially for a first-time home owner. This benefit also encourages individuals not to cash in their...
Previous Articles
Millions owed in unclaimed benefits
Around R20 billion of pension fund assets remains unclaimed by an estimated 3.5 million pension fund members or their beneficiaries. This is according to the Financial Services Board (FSB) which recently held a round-table discussion to address the issue of unclaimed...
The impact of debt on our retirement
Debt is the main reason people withdraw their retirement benefits when changing jobs, according to key findings of the 2015 Sanlam Benchmark Survey, a comprehensive annual review of South Africa’s retirement industry. After interviewing thousands of retirement fund...
Retirement reform myths: time for a rethink
The phased reform of South Africa's retirement sector may have a far-reaching impact on retirees – especially those who have not recently assessed their strategy. While many of the mooted retirement reforms will only be implemented next year, one of the first changes,...
What to do if you’ve cashed in your pension fund
The continued mass resignations and cashing-in of pension funds by employees belonging to the Government Employees Pension Fund is a concern that has been highlighted widely. The biggest risk in withdrawing your pension fund is the issue of financial stability at...
Should I pay off my bond with my pension?
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...
The truth about retirement reform
Setting the record straight in terms of how the government's proposed retirement reforms will affect you. Over the last few weeks vested interests have tried to create fear and confusion around the proposed retirement reform. Between unions flexing their political...
Store your pension money in a preservation fund
“I am about to change company and will receive R157 000 between my pension and provident fund. After tax I should receive R130 000. I have bank loans along with my wife of about R70 000, and we also want to renovate our kitchen and bedroom. What do you suggest I do...
Unclaimed benefits: do you know where your money is?
More than three million South Africans are owed more than R45 billion in unpaid benefits from retirement funds they have left already, according to unclaimedbenefits.co.za. In many cases when leaving a company, employees may not be aware of funds that have accrued to...
The best way to preserve your pension
David Elliott of Marriott Asset Management explains how to choose between a preservation fund and a new employer’s pension fund when moving jobs When you change jobs, you receive a pension pay-out, but the best thing to do with these funds is to keep them invested for...
Receiving a death benefit
A reader recently wrote to City Press to question how his late wife’s pension benefit had been distributed and whether it was in accordance with the law. It raises some interesting points about the provision of the law and the role of pension fund trustees. ...