Browse FAQs

Retirement annuity

What happens to my retirement annuity when I resign?

Irrespective whether you belonged to a Group RA scheme or took out the retirement annuity yourself, the retirement annuity is a savings product for individuals, registered in your name.

What are the consequences of canceling my retirement annuity?

If you cancel the policy before maturity date (normally in the year you turn 55), the policy will be made "paid-up".

I tried doing a withdrawal and something went wrong. Will I pay an administration fee if the withdrawal isn't successful?

No, the administration fee will only be charged on a successful submission.

Is the administration fee applied before or after tax?

The administration fee is deducted before applying for tax.

If you terminate your fund membership and have already made a withdrawal within the tax year, can you make another withdrawal at resignation?

You can make an additional withdrawal in the same tax year only if the balance in the savings component is less than R2 000.

Are unclaimed benefit members included in the two-pot system?

No, unclaimed benefit members are not included in the two-pot system.

Are paid up members included in the two-pot system?

Yes, paid-up members will be included in the two-pot system.

Why does the value of my savings pot change?

The value of your savings pot can change daily because it’s invested in the market.

How is the savings pot invested?

The savings pot is invested the same way your retirement pot is invested since the main objective is to grow your money until retirement.

Am I allowed to transfer my savings pot to my retirement pot?

Yes, you can, however, remember that means you no longer have access to the amount transferred to the retirement pot.

Is my R550k benefit at retirement reduced if I withdraw from my savings pot?

Vested pot withdrawals will reduce the tax-free benefit at retirement, whereas savings pot withdrawals will not.

What will happen when you retire after the two-pot retirement system is implemented?

At retirement, you will have access to the 3 different components. There are different rules for each component.

Can I access my money in the savings component from 1 September 2024?

Legislation allows you to access your money from your savings pot from 1 September 2024. There are a few things to keep in mind.

Why was the two-pot retirement system implemented?

Since only 6% of South Africans can retire comfortably, the two-pot retirement system was created to alleviate financial stress by introducing changes to retirement savings preservation as it provides access to retirement savings when emergencies arise.

What does the two-pot retirement system mean for you?

10% of the investment value on 1 September 2024 will be transferred to a savings component. The amount will be limited to R30,000 and form part of the savings component.

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