Question:
i have an Old Mutual RA and am paying provident fund through my company i work for. I will be turning 55 at end of 2016 and will still be working and paying provident fund. My question is that can i withdraw funds from my retirement annuity whilst still employed.
Answer:
Umesh, Yes, you can withdraw from the retirement annuity fund at age 55, even if you are still working. Note however that if your stated maturity date is at an age age older than 55, you may incur an early surrender penalty. Also, you will be required to use two-thirds of the retirement annuity to buy an annuity If the retirement annuity value is more than R75 000. You will be taxed on this annuity income at your marginal tax rate. If you are still earning employment income, the tax rate on your annuity income will be higher than if you only accessed the retirement annuity after you retired.
