Leaving Your Employer's Fund

carefully selected investment portfolios

A preservation fund provides a tax-efficient way for you to save the money you receive from your employer’s pension fund when you leave. You may transfer your money to a preservation fund in the event you are dismissed, retrenched, or you resign from your job.

We are here to assist you make the best choices as you move to the next stage of your life. Whether you are a member of the Government Employees Pension Fund (GEPF), are part of a private pension or provident fund.

We can restructure your existing preservation fund. Do you ever stop to consider that you might not be invested appropriately? We can assist you restructure existing preservation fund administered by other companies. We will work with you to provide the right solution for your specific need.

  • You do not pay tax when transferring your retirement benefit to a preservation fund
  • Your money is invested in a selection of carefully selected investment portfolios
  • You can make one partial or full withdrawal before retirement after the money is transferred. This is dependent on the rules of your employer fund
  • All the investment returns in your preservation fund account are completely tax-free. You only pay tax on your lump sum in the event that you do a withdrawal or retire

What is a preservation fund?

This is a retirement fund designed to invest the money from your pension or provident fund. You may transfer your money to such a fund in the event you are dismissed, retrenched, or you resign from your job.

Who can invest in a preservation fund?

  • Any member of a pension or provident fund who terminates his/her membership of an employer fund due to resignation, dismissal or retrenchment.
  • Non-member spouses awarded a pension interest as part of a divorce order who wish to preserve their benefits.

What are the benefits of investing in a preservation fund?

  • You do not pay any tax on transfer to a preservation fund.
  • We select an investment strategy based on your retirement goals so that your money continues to grow.
  • You can make one withdrawal before the age 55 but this is subject to the rules of your fund and applicable legislation.
  • We do not charge administration fees.

What if I already have as existing preservation fund?

You are able to transfer preservation funds between different service providers at no costs. We can restructure your existing preservation fund to suit your goals and income requirements at retirement. We will work with you to provide the right solution for your specific needs.

Can I make a withdrawal after the transfer?

You can make one withdrawal before the age 55 but this is subject to the rules of your fund and applicable legislation. The withdrawal will be subject to the relevant withdrawal tax tables applicable to retirement fund lump sums.

What happens when I reach retirement age?

When you retire from a pension preservation fund, you are allowed to take up to one-third of your retirement capital in cash and transfer the balance to an annuity. On the other hand, in a provident preservation fund you can take a portion in cash and transfer the balance to an annuity. An annuity is a product that will provide you with an income at retirement.

Stable Portfolio
Why this portfolio?

You want a model portfolio that seeks to deliver returns above that of a money market account

You have a low risk appetite but require capital growth

You want to preserve your capital, without exposing it to capital loss over a two year period

I'm Interested
Balanced Portfolio
Why this portfolio?

You want steady growth of income and capital

You are comfortable with moderate market fluctuations and potential capital loss

You are investing for three years or longer

I'm Interested
Equity Portfolio
Why this portfolio?

You require long-term capital growth

You do not require an income from your investment

You are willing to accept short-term capital losses

You are investing for five years or longer

I'm Interested

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creating a financial plan that suits you.

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