One in three people in South Africa cash out all their retirement savings when they leave a job because of retrenchment, termination or resignation, according to the 2023 Old Mutual Savings & Investment Monitor.

They tend to make those early withdrawals from their retirement savings not because they want to, but because they need to – and often it’s to pay off debt. But while this may seem like a good idea (or the only option) at the time, it has a serious long-term impact on your retirement outcome.

Research from Genesis Analytics in partnership with the Financial Sector Conduct Authority shows that 90% of South African retirees will need to work during their retirement years in order to maintain their standard of living.

Therefore, when leaving a job, the right move is to keep your retirement savings where they are – invested in a retirement fund where your savings can continue to grow. Fortunately, help is at hand. If you’re an Old Mutual SuperFund member, the SuperFund Preserver facility lets you preserve your retirement savings, even if you resign or lose your job due to retrenchment or dismissal.

Your SuperFund membership will continue automatically, even though you are no longer with your employer. That means your retirement savings will remain invested and continue to grow. There is no minimum amount required to stay invested.

A helping hand

In the Old Mutual SuperFund, your options are to remain in the fund and become a Preserver member; or move your retirement savings to another fund if you wish; or withdraw some or all of your retirement savings in cash and transfer any balance to another retirement fund.

If you don’t actively make a choice, you will automatically become a Preserver member and your money will be invested into Preserver’s default portfolios.

If you make an active choice, you’ll be able to choose from a range of investment packages that will – like the default portfolios – allow your capital to grow while managing inflation, interest and volatility risk.

These packages make the most of your existing retirement savings, even if you can’t make additional contributions to the fund once you’ve left your employment. Admin fees will continue to apply to all packages.

The packages include:

• Trustee Choice – lowest administration fee and invests your savings in the Smooth Bonus Fund selected by SuperFund’s Management Board.
• Lifestage – also the lowest administration fee, but offers four distinct investment options and switches investors into appropriate portfolio as they progress through life. can specify their target retirement age or normal associated with scheme.
• Albaraka – another lowest administration fee option that offers an ethical investment that provides steady, long-term capital growth, as well as a moderate level of income via a Shari’ah-compliant portfolio.
• Strategy – has a higher administration fee that offers various investment funds, including life-staging solutions, and members can switch between funds at no extra cost.
• Extended – the highest administration fee but allows you to structure your investment portfolio by choosing from a broad range of investment funds from Old Mutual and other investment managers.

SuperFund members with R30 000 or less in savings may wish to invest in the Trustee Choice investment package, which allows them to keep fees to a minimum.

Fee structure

For membership prior to 17 July 2023, each of the five SuperFund Choice investment packages mentioned above, has a fee attached.

Where employers joined SuperFund on/after 17 July 2023 and one of their members becomes a Preserver member, then such persons will pay one monthly fee (R32,15 per member per month, excluding the R6,30 governance fee), regardless of which investment package they choose, and if a member has money invested in non-Old Mutual investments, a charge of 0.15% of total assets per member per annum, charged monthly, capped at R500 per member per month.

Old Mutual SuperFund Preserver allows you to make a smooth, seamless transition out of your current job, and preserves your retirement savings until the day you retire, no matter where you go. This helps to ensure financial stability and continuity, giving you peace of mind.