Question:
To whom it may concern, I need advice please. I have a private retirement annuity which I have had since 1985 and have only been paying R60.0/month since then. My Retirement Annuity is standing at around R180 000.00 at present. What I would like to know is that I want to take R30 000.00 from this policy now and transfer and invest the rest else where. I do not require a monthly income now as I am still working and have a company pension as well and am only planning to retire in about 7 years time and would only then want to receive a monthly amount from the above private Retirement Annuity. Thanking you Regards Denise
Answer:
Denise, We cannot - legally - offer advice on this forum, only information. If you are over 55, you can draw the retirement annuity as a lump sum (as it is less than R247 500). Assuming you have not previously withdrawn from another Retirement Annuity, you will not pay tax on this. You can re-invest the balance into another Retirement Annuity, or make a voluntary contribution into your pension fund, if your fund rules permit this. Depending on your specific circumstance, you could claim these investments as a tax deduction. You can also invest this money in a non-retirement fund investment vehicle such as a unit trust, or just a bank savings account. (The link to our website will explain how unit trusts work, it is not a recommendation that you buy this product,) Please also refer to our section on Financial Education, which sets out quickly and simply what you need to consider when saving for your retirement.
