Page 24 - TODAY Magazine Issue 1 2022 - Old Mutual

PENSION & PROVIDENT FUNDS
EXPLAINED
In South Africa, you can only join a pension or provident fund through your employer, and membership is compulsory for as long as you work at that specific company.
What to know
• Your employer chooses the pension or provident fund.
• Your monthly contributions are paid by your employer, by you or split so that each pays a percentage.
• You’ll have to stay in the pension fund for as long as you work at the company.
What happens when
I move to a new job?
If you change jobs and funds your can:
• Move the money to your
new retirement fund.
• Put it in a
retirement annuity.
• Transfer it to a
preservation fund.
• If you’d like to take some
of your savings as a cash lump sum, different rules will apply under different circumstances. It will be best to ask a financial adviser.
Will I be taxed?
No, not when moving your savings between different retirement funds. Lump sum payouts will be taxed, though.
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How much will I need?
To retire comfortably, you need a monthly pension that’s equal to roughly 70% of your salary the year before you retired.
This information serves as a guideline only. Consult a financial adviser for advice tailored to your specific needs.
IF YOU’D LIKE TO SPEAK TO A FINANCIAL ADVISER
CALL 0860 60 60 60 EMAIL todayomc@oldmutual.com VISIT Old Mutual Personal Finance online