Retirement Benefit
Age 55+: Unlocking your golden years with favorable tax structures and lifelong income options.
Annuity Strategy (Reg 39)
The Fund utilizes an "Out of Fund" strategy. This means you must use your accumulated capital to purchase an annuity (monthly pension) from an external insurer of your choice.
You are not forced into a one-size-fits-all product. You have the freedom to shop for an annuity that matches your specific health and financial needs.
Appointed Counsellors
The Fund provides access to these experts at no additional cost to guide your decision.
Why this matters to you
Strategic advantages of retiring from the Fund.
Maximized Cash Payout
Retiring unlocks the most favorable tax treatment. Unlike resignation (R27,500 tax-free), retirement allows the first R550,000 to be tax-free. This significantly increases your cash in hand.
Lifelong Income Security
Purchasing an annuity converts your capital into a steady, monthly income. This provides financial stability and ensures you do not outlive your savings, securing your dignity in retirement.
Personalized Choices
Reg 39 gives you autonomy. You can shop around with external providers to find an annuity product that best matches your specific health requirements and financial legacy goals.
Benefit Breakdown by Pot
How your different savings components are treated at Retirement.
Vested Pot
Pre-Sept 2024
- Full Vested Pot in CASH.
- 1/3rd of Non-Vested Pot in CASH.
- 2/3rds of Non-Vested Pot to Annuity.
Savings Pot
Always Accessible
- Entire balance paid in CASH.
Retirement Pot
Preserved Compulsory
- Full amount must buy an Annuity.
- Provides monthly income.
Retirement Tax Table (2025)
Significant tax benefits apply when retiring vs resigning.
| Taxable Amount | Rate of Tax |
|---|---|
| R0 – R550 000 | 0% (Tax Free) |
| R550 001 – R770 000 | 18% of taxable income above R550 000 |
| R770 001 – R1 155 000 | R39 600 + 27% of taxable income above R770 000 |
| R1 155 001 + | R143 550 + 36% of taxable income above R1 155 000 |
Summary of Advantages
Tax Savings
The substantial tax-free threshold of R550,000 is a direct financial gain, preserving a large portion of your wealth from the taxman.
Professional Support
Benefit Counsellors are available at no additional cost. You don't have to make complex financial decisions alone.
Flexibility
The De Minimis rule (R165,000) protects those with smaller savings from being forced into tiny monthly pensions, allowing full cash access.