Question:
Does a pension preservation fund attract capital gain tax?
Answer:
Senzo, No, not directly. Investment returns in a preservation fund are not taxed; the entire benefit is only taxed on withdrawal or retirement (either per the withdrawal or retirement lump sum tax table), or, if converted into an annuity, as income.
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.
