get in touch
Contact us
Complete this form to get a call back, or call us on weekdays between 08:00 and 17:00.
- About
- Guidance
- Options
- Insights
- Charges
- Our solutions
- Resources
- Get in touch
about
Introduction
Building wealth often requires a move from one employer to another, or deferring your retirement to a later date if you have already reached retirement age. Preserve and grow your existing retirement savings in a flexible investment and continue working towards your goal of a comfortable retirement.
- Minimum contribution
R100,000 lump sum
R15,000 per additional contribution
- How long to invest for
You must remain invested until you are at least 55 years old.
guidance
How it works
options
Solution flexibility
You have total freedom to change your underlying investments. There is no charge to make a change, but depending on where you move your money to, initial investment charges may apply.
Access to the widest choice of investments
A wide range of collective investment funds.
Wrap funds, managed by discretionary investment managers.
Listed shares.
insights
Access to your money
- Access to your money before retirement
Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. In summary, your retirement savings are divided into 3 components, and each component gets treated differently.
Vested component: The one allowable withdrawal from a preservation fund remains available. Such a withdrawal will be deducted proportionally from both the vested and non-vested rights portions. Access is possible in the case of emigration (three years’ cessation of tax residency), disability or death, subject to the applicable fund rules.
Retirement component: No access at all, except in the case of emigration (three years’ cessation of tax residency), disability or death, subject to the applicable fund rules.
Savings component: One withdrawal per tax year, subject to taxation according to the individual income tax table. The value of the withdrawal must be at least R2 000 before costs, but there is no maximum withdrawal value.
- When you retire
When you retire, you will be allowed to take a portion of your savings as a lump sum. The remainder must be used to purchase an income-generating product (compulsory annuity) such as an Investment-Linked Living Annuity, a Life Annuity or a combination of the two. These aim to provide you with an income for the duration of your retirement.
Access to your funds is determined by the Two-Pot System, which came into effect on 1 September 2024. In summary, your retirement savings are divided into 3 components, and each component gets treated differently at retirement.
Vested component: Provident Preservation Fund: Benefits in the vested rights portion of this component will be available as a lump sum (subject to taxation), as an annuity, or as a combination. Benefits in the non-vested rights portion are subject to the purchase of a compulsory annuity (to provide you with an income during retirement) with at least two-thirds of the value. Pension Preservation Fund: All benefits in the vested component are subjected to the purchase of a compulsory annuity with at least two-thirds of the value. If the investment is funded by a provident/provident preservation fund, however, it may consist of a vested and non-vested rights portion. *Only if you were previously a member of a provident fund you might have both a vested and non-vested rights portion inside your vested component.
Retirement component: All benefits must be used to purchase a compulsory annuity to provide you with an income during retirement.
Savings component: You can take the full amount as a lump sum, or use it to purchase a compulsory annuity.
If the full value of the retirement component + two-thirds of the non-vested rights portion in the vested component is equal to or less than R165,000, the full value of the retirement component and the non-vested rights portion of the vested component may be taken as a taxable cash lump sum.
- Early retirement
If you are permanently disabled before you retire, your benefit is paid out to you in the same way as if you had reached retirement (aged 55).
- When you die
Trustees will take into account your wishes and all your dependants’ needs when you die to decide who receives this benefit.
- The vested and non-vested rights portions
If you were previously a member of a provident fund, the vested component of your preservation fund might be split into a vested rights portion and a non-vested rights portion due to legislative changes that came into effect on 1 March 2021.
Vested rights portion: For all members: Contributions made to a provident fund or provident preservation fund before 1 March 2021 plus growth thereon will have vested rights attached to them (which means that the rules applicable to provident and provident preservation funds before 1 March 2021 still apply). For members who were 55 or older on 1 March 2021: Contributions made to a provident fund or provident preservation fund from 1 March 2021 onwards plus growth thereon will have vested rights attached to them if the member remains a member of the same fund until retirement and does not opt in to the two-pot retirement system.
Non-vested rights portion: For existing members who were younger than 55 on 1 March 2021, as well as new members who joined on or after that date: Contributions made from 1 March 2021 onwards plus growth thereon will not have vested rights attached to them. In this context, it means that the member will be required to annuitise at least two-thirds of the proceeds at retirement, in other words they must use it to purchase an annuity to provide them with an income during retirement.
charges
Tax and fees
Fees vary per product and underlying investments. Please speak to your financial intermediary to make sure you understand which fees you pay and why.
Tax benefits
At retirement there is no tax on the amount transferred to a post-retirement product that provides you with an income during your retirement.
You don’t pay tax on any interest or dividends.
No capital gains tax is applicable.
What is taxable
There is tax on any portion of your retirement savings that you withdraw in cash at retirement.
There is tax on any withdrawal benefit before retirement.
our solutions
Smart strategies to help you preserve your retirement savings
Preserve your existing retirement savings if you change jobs to continue growing your wealth.
Sanlam Cumulus Echo Preservers
Be rewarded with a bonus payment if you remain invested until retirement.
resources
Find additional resources to support your financial journey
Downloadable resources
Select all | ||
|---|---|---|
| Wealth Bonus | ||
| Access to retirement savings - 1 September 2024 | ||
| Two-pot Retirement System Guide - 2024 | ||
| Tax on withdrawals from the savings component | ||
| The Practical side of paying tax on a savings withdrawal benefit |
Select All |
|---|
Wealth Bonus
Access to retirement savings - 1 September 2024
Two-pot Retirement System Guide - 2024
Tax on withdrawals from the savings component
The Practical side of paying tax on a savings withdrawal benefit
Additional resources
Select all | ||
|---|---|---|
| Glacier Investment-linked Living Annuity (ILLA) | ||
| Life Annuity | ||
| Retirement Fund Member Information (Two-Pot System) |
Select All |
|---|
Glacier Investment-linked Living Annuity (ILLA)
Life Annuity
Retirement Fund Member Information (Two-Pot System)