When changing or leaving employment before retirement, it is recommended that you transfer your existing retirement savings at your employer to a pension or provident preservation fund.
This preserves the retirement savings and you are still able to keep the relevant tax benefits as if you are invested in a pension or provident fund. There is no taxation payable on returns or capital gains within the funds. Additionally, there is zero taxation payable when transferring to a preservation fund which is a major benefit as any pre-retirement cash withdrawals will be heavily taxed.
Your Preservation Fund can be invested into any top-performing unit trusts available on our platform, and we can recommend a suitable portfolio that will meet Regulation 28 requirements as per the Pension Fund Act.
You can make changes to your portfolio as you get closer to retirement, and there are zero fees or charges for any switches or transfers.
The capital in your Preservation Fund will pass to your nominated beneficiaries if you die and can be paid out immediately, which means that you do not have to wait for the entire estate to be wound up for dependents to receive the monies.