Times have changed. People no longer remain with just one company for their entire working lives. And whether you resign to seek greener pastures, take a package, or your employer's pension or provident fund is dissolved, you face the problem of having to decide what to do with the benefit amount from your pension or provident fund. How can you make sure you get the most out of your hard-earned money? Do you qualify to have your funds Personally Managed? Does your Preservation qualify you into our Million Rand and / or Dollar Club?  

Preservation Funds

On leaving your current employer you can transfer your savings from their retirement fund - if it is an approved pension / provident fund - into the Preservation Pension Fund or Preservation Provident Fund.
Retirement savings are transferred to these funds on a tax neutral basis. Service years associated with the investment are retained so you qualify for full tax advantages when you retire.
As a member you may be able to make one taxable withdrawal before retirement, depending on legislation and subject to any restrictions imposed by the transferring fund.
Members are required to retire from the Preservation Pension Fund or Preservation Provident Fund when they retire from employment. If you are not employed, you can retire at any age between 55 and 70 years.
The Preservation Fund facilitates the growth of capital into a potentially healthy nest egg as your retirement savings are invested in a portfolio comprised of a variety of investments. There is a number of investment options which can be appropriately combined to match your risk profile and investment horizon    

Preservation Pension Fund members can take up to a third of the proceeds as a lump sum after tax has been deducted from this amount. The remainder must be used to purchase an annuity.

Preservation Provident Fund members can take up to 100 percent of their  proceeds as a cash lump sum after tax has been deducted. Pre-tax proceeds can be used to purchase an annuity.

After tax is deducted, the lump sum can be invested in an Investment Plan which affords the member the option of including equities in their portfolio. The equity portion of your member's portfolio is managed according to your risk profile.

Do your funds qualify you into our Millionaires Clubs?