[READER QUESTION] 'I am 57, will resign shortly and take up a new job. I would like to move my provident fund into a preservation fund. What will be the best options?' Michael Haldane from Global & Local replies. Moneyweb FinancialPlanning
I am 57, am going to resign shortly, and will be taking up a new job. I would like to move my provident fund into a preservation fund. I would like to take a cash portion and then move the rest into my new provident fund if they allow me to. What will be the best options, and please can you recommended preservation funds?Thank you for your question and congratulations on your new job. Firstly let’s explain what a provident preservation fund is.
As of 1 March 2021, a new law came into effect in the Pension Funds Act. New contributions made to provident funds from this date will be subject to the same requirements as a pension preservation fund or retirement annuity. You have said that you would like to take a cash lump sum before transferring the funds into another provident fund or a provident preservation fund. You are permitted to take any amount, but it will be subjected to the withdrawal lump sum benefit tax table, as shown below.
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