Your Retirement Benefits

When you retire, you are required to buy a pension with at least two-thirds of your fund credit

  • Normal retirement age is 63 years.
  • Your retirement date is the last day of the month in which you have your 63rd birthday.
  • Early retirement can be taken from age 53 onwards, provided that you have obtained the consent of your employer to retire early.

How will my Fund Credit be paid to me?

  • You can take up to a third of your Fund Credit as a cash lump sum. You must use the balance (after the cash lump sum) to purchase an annuity from an insurer of your choice.
  • Any cash lump sum will be taxable, although the first R500 000 will be tax free if you have not withdrawn retirement fund benefits previously. The balance of your Fund Credit will be transferred to the insurer of your own choice tax free to fund your future pension income payments, which will be taxed.
  • We recommend that you obtain expert advice. Alexforbes Financial Planning Consultants will give you two free individual advice sessions, within five years prior to your actual date of retirement.

If you do not require an income immediately

You can defer taking your retirement benefit and leave your money invested in the Fund.
  • You will continue earning investment returns.
  • You will no longer contribute to the Fund.
  • You will not qualify for any of the insured benefits such as death, disability and funeral benefits.
  • You will still pay investment fees and costs.
Contact the Alexforbes Advice Centre on 0860 100 983 or email iac@aforbes.com to arrange your two free individual financial advice sessions. Alternatively, contact a certified financial planner of your own choice.

It is important to consider your options when you retire

  • At what age is it best to retire?
  • Should you draw your pension immediately or defer it for later?
  • What is a life annuity compared to a living annuity?
  • What are your pension options when you retire?
  • What are the advantages and disadvantages of the different pension options?
  • Choose the In-fund Living Annuity option and remain a member of the Fund.
  • Always get expert financial advice.
When You Retire
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