Question:
My husband has a living annuity and receives a monthly amount. However, he has been diagnosed with terminal cancer and early onset alzheimers and cannot work which has placed us in some financial stress. I have asked the fund to release a lump sum with motivation from Doctors - but they have said it against rules. Is there any way they can make an exception?
Answer:
Wendy, No, unfortunately, the law does not make provision for an accelerated draw-down (beyond the 17,5% permitted per annum) even in cases such as yours. This is unlike the situation with retirement funds, where trustees have some discretion to permit early retirement (withdrawal) due to ill-health.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
