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Retirement benefit


When you reach normal retirement age, you become entitled to a benefit equal to your Fund Value. This is a sum that represents the total contributions made, together with the investment returns achieved, less expenses.

Each participating employer decides on a normal retirement age for its staff.

 

Should your employer agree, you may retire at a later date; OR earlier, after attaining age 55; OR at any time if your retirement is due to ill health and you are not eligible to receive a benefit from the Disability Income Plan.

When retiring, you have the following options:

 

 

Any portion of your benefit that you choose to take in cash will be taxed as follows:

 

Lump sum amount

 

Rate of Taxation

0 - R500 0000% of taxable income
R500 001 - R700 00018% of taxable income above R500 000
R700 001 - R1 050 000R36 000 plus 27% of taxable income above R700 000
R1 050 001 and aboveR130 500 plus 26% of taxable income above R1 050 000

 

Any benefit previously received tax free will be deducted from the tax-free amount.