Well done miss Money and Law. Thank you for a year of wonderful content✨, there’s always something new to learn and share with friends. Please share your other social handles so I can tag Friends and enter the competitive. So if I already have provident fund with my employer, is it’s also advisable to get a pension fund on the side?
Regarding your question, you have to first calculate if you saving enough for retirement and if you are not its advisable to get an RA on the side. Another advantage is that it reduces your tax liability.
Thank you so much for this insightful video. A quick question: under South African law am I compelled to buy an annuity or can l just continue to get the annuity from the employer till l die?
You are welcome. It depends on the fund you are in. In a pension fund you are compelled to buy a pension with 2/3 of your benefit, you may take 1/3 as cash or use all of it to buy an annuity/pension. In a provident fund you can take the whole amount as cash, but contributions accumulated after 1 March 2021 are subject to a 2/3 annuitasition rule like in pension funds. But if you were 55 or over after 1 March 2021 in a provident fund you can take you whole benefit as cash.
lease note we are in the process of refunding your previous employer for the over payment of contributions, once we have completed the refund we will make payment to you. Please assist what does this mean from provident fund claim
