Mokgotla writes: I am 35 years old and I want to invest R700 a month in a retirement annuity. My company is also contributing to my pension fund. Is this a good idea and how do I invest? Maya replies: Since 1 March 2016 you are able to invest up to...
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...
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....
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...
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...
I was recently asked by a young woman if it would make sense for her to cash in her pension, settle her debts and start all over again. It sounds like a good idea: on the one hand you have debt with interest as high as 25% per annum and on the...
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...
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...
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...
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...
“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...
Nelson wants to cash in his pension in the hope that he can invest it for better returns. “I have been employed by the government for about 20 years. Recently the government sent a letter showing the amount I would receive if I retired, resigned, died or was...
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...
We should value our retirement funds as much as we do our homes Last week I received an email from a reader who was falling behind in her debt repayments. Her only solution, she believed, was to resign from her job in order to access her pension fund to settle her...