If your new employer has a pension or provident fund, transferring qualifying retirement money into that fund may be one of the options to consider.
Why people transfer to the new fund
- Simpler administration with fewer retirement accounts.
- A single investment strategy to monitor.
- Potentially competitive institutional pricing.
- Keeping retirement capital within the retirement system.
Why you should still compare
Convenience is not the only consideration. Compare the new employer fund’s costs, investment range, risk benefits, retirement options and governance with the alternatives available to you.
Direct transfer vs taking cash first
Do not assume you can take a cash payout and then simply “put it back” with the same tax result. A properly structured direct transfer between approved retirement arrangements is different from a personal cash withdrawal.
SARS — Retirement Lump Sum Benefits
SARS — Two-Pot tax implications
South African Government — Two-Pot retirement system
Want help with your actual retirement-fund decision?
Request a no-obligation review before you submit a final withdrawal, transfer or retirement instruction.
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