Question:
When I resigned last year in June I converted my pension provident fund into a preservation fund (I was turning 55 in August of 2012). I was advised that I could access 1/3 of my provident fund, which I did. I now feel that I need to use the balance. What are my options?
Answer:
Jeffrey,
So do you have a pension or a provident fund? If you belong to a pension preservation fund, you are allowed one full or partial withdrawal before retirement (earliest age 55); when you retire you need to convert at least two-thirds of the balance into an annuity, either a living or a guaranteed annuity. You can take up to one-third as cash.
If you belong to a provident preservation fund, you are also allowed one full or partial withdrawal before retirement. At retirement (also earliest age 55) you can access the balance, either as cash or as an annuity, or as a combination of the two.
