Question:
what happens if i have a retirement annuity however i stop working for a year because i want to study, what happens to my retirement annuity and can i resume paying the subs after i get back to normal employment at the completion of my studies..
Answer:
Manzi, This depends on the type of retirement annuity you own. If you own a policy-based retirement annuity from one of the large life companies, they will make your retirement annuity paid-up, charge you a early surrender penalty, and ask you to start a new retirement annuity when you want to start saving again. If own a new age (non-policy-based) retirement annuity with say 10X Investments, you can simply take a contribution holiday - with no penalties - and contribute to the same retirement annuity again once you can afford to do so. Some policy-based retirement annuities now do permit contribution holidays for a short period, but not for one year. Check the Terms & Conditions of your policy to see what the actual consequences will be for you.
