Question:
I'm turning 55 in September 2104 . My wife and I work for a big company and both have more than 30 years' service and both contribute extra to the pension fund. I was thinking of making use of the option of early retirement from my Sanlam annuities. What are my options and possible penalties? Values of two annuities: 1) Without growth - R516 054 With growth - R577 896 & 2) With out grow - R701 864 With grow - R722 951
Answer:
Louis,
We are 10X Investments, not Sanlam, so we cannot advise you what your penalties (if any) would be. You can access your annuities from age 55, but you will have to use a least two-thirds to buy an annuity (living or guaranteed). You will be taxed (individually) on any cash you take out per the retirement lump sum tax table. The first R500 000 of each of your cash lump sums is not taxed (assuming you have not previously withdrawn from retirement funds).
