Question:
Can I get my Sanlam RA paid out in full (matures 1 April 2014, I turn 56 that day)? I know the rule is that you can only withdraw 1/3 as a cash lump sum and that the rest must be used to purchase a living annuity, but I really would prefer the total amount in cash, which would be around R200 000, even if I have to get legal help.
Answer:
Lesley,
No, there is no way around this rule. Don't waste your money on seeing a lawyer - they cannot change the law and they will tell you so (at a fee). Your only option to access your fully money as a (taxed) lump sum is to go through the formal emigration process with SARS, or to hope that the market crashes and that your retirement annuity value drops to below R75 000 by the time you retire.
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.
