If you are moving to a new job, consider transferring your benefit into your new employer's retirement fund - either a provident or pension fund.

Advantages of a provident/pension fund

1. Transferring a pension fund into a new pension fund is tax-free. Transferring a provident fund into a new provident fund is also tax-free.

2. Your money is invested and will grow, depending on how it is invested, until your retirement.

3. If you die before you retire, your money will not form part of your estate but will be allocated to your dependents by the trustees of the fund in terms of Section 37C of the Pensions Fund Act.

4. If you get into debt or become bankrupt, your fund will be left untouched.

5. The amount you save is only % taxed on withdrawal.

6. You can take a lump sum of a up to one third when you retire. You'll pay a lump sum tax rate and no capital gains tax.

Disadvantages of a provident/pension fund

1. Transferring a pension fund into a provident fund is not tax-free, and you will be taxed the same as if you had withdrawn.

2. You can only touch the money once you have left your employer's fund. In a way, this helps you save.

3. With your new employer's retirement fund, you might have little or no say in how your money is invested. That's not the case with a preservation fund or retirement annuity.

Weigh up your options and decide the best path for you by setting up a time to speak with an Old Mutual Financial Adviser.