Browse FAQs

Retirement annuity

What happens to my retirement annuity if I get divorced?

The divorce decree/settlement determines how the marital assets are divided, and it will have to make specific mention of the retirement annuity.

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Can I use my retirement fund as security for a loan?

The short answer is no. In terms of the Pension Funds Act, you are not allowed to pledge or cede your retirement fund, or use it as security for a loan (other than a housing-related loan, if the fund rules provide for this).

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Can I borrow money from my Sanlam Provident Fund?

ou can only borrow money from your Sanlam Provident fund if your Fund rules permit this and the loan is for a purpose as specified by the Pension Funds Act (ie housing related). Check with your HR department.

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Do I get my money back if I cancel my Metropolitan RA?

You will only get your money back if the paid-up value of your Metropolitan RA is less than R7 000. Otherwise you must wait until your turn 55.

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Can I access the money in my Metropolitan Retirement Annuity?

Unless your paid-up retirement annuity value is less than R7 000 you will not be able to access your money until you turn 55.

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How do I top up my RA using My10X?

You can make a top-up to your 10X investment on our member portal, My10X.

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Do you pay tax on a retirement annuity?

Even though retirement annuities are tax-efficient investment vehicles, there are instances whereby you would be liable to pay tax on the proceeds of your annuity.

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What happens to the balance of an RA fund upon death?

This depends on the type of pension (annuity) your husband bought.

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Is it advisable to move my Old Mutual RA to my Momentum RA?

We cannot use this forum to offer individual advice, and obviously we have far too little information to do so. Our answer therefore has to be somewhat generic.

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What are the similarities between the Sanlam and Old Mutual RA's?

As a broad generalisation, both are expensive in terms of fees, inflexible in terms of contributions, confusing in terms of your investment choice, lacking in transparency on fees and performance

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Can I resume payments to my paid-up Old Mutual RA?

As you took out an Old Mutual RA, this will be a life company retirement annuity, which is underwritten and subject to a long-term contract or policy.

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Do I get my money back when canceling my Old Mutual RA?

You do, but unless its less the paid-up Old Mutual RA value is less than R7 000

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Can SARS deduct tax that I owe from my retirement fund?

SARS does not use your retirement fund lump sum to deduct tax that you owe in respect of income - this is not permitted by the Pension Funds Act.

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Can I take out a loan against my retirement annuity?

By law, you are not permitted to take a loan from your retirement annuity

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What is the best retirement annuity for my pension?

An RA (retirement annuity) is a pre-retirement product. You should discuss your options with a financial advisor to determine what is the best retirement annuity for you.

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