Resignation

If you resign, you will be entitled to your actuarial reserve value.

Retrenchment or Redundancy

If you are retrenched or made redundant you will receive your actuarial reserve value. If you have reached aged 50, you may opt for the early retirement benefits instead of the lump sum.

What can I do with my money, if I resign, get retrenched or become redundant

When you leave the employer, these are the options available to you:

1. Leave all your money in the fund (this option would apply for your entire benefit and no portion of the benefit may be taken in cash or transferred to another approved retirement fund);
2. Move your money to a preservation fund;
3. Move your money to a retirement annuity;
4. Move your money to your new employer’s fund; or
5. Take all your money cash (subject to tax as per the current legislative tax scales)

You should always keep your retirement savings for its real purpose – to provide you with a retirement benefit. If you take cash on leaving the fund before retirement you may have to pay tax. You can avoid paying tax at this time by following options 1-4 above and preserving your investment. 

Click here for more information on the Taxation.

Taking cash on withdrawal before retirement will also make it difficult for you to meet your retirement goals. Talk to a financial advisor before you take your money in cash.  Click here if you need a financial advisor.