RETIREMENT
A retirement benefit becomes payable when you leave the service of the employer at normal retirement age. Your provident fund’s normal retirement age is 65. You may take early retirement from age 55 years (with consent from the employer).
Provident fund members will be able to take a maximum of 1/3 of their fud benefit as a cash lump-sum at retirement, while the remainder must be used to purchase a monthly pension. *This is subject to 1 March 2021 annuitization rules of vested versus non-invested rights and subject to the limit of R247500.
RESIGNATION, DISMISSAL, REDUNDANCY OR RETRENCHMENT
When you leave the service of your employer before you reach normal retirement age you will receive your fund credit which is made up of all your own contributions, your employer’s contributions less costs, plus interest earned. The benefit is paid as a cash lump sum, subject to tax.