Question:
I took out a retirement annuity in 2003 and I had been paying a monthly contribution of R300 since the 1st of March 2003 to date. I am currently 55 years of age and my contract indicates that the basic assurance will end on 01/03/2021 and the capital provider will end on 01/03/2015. Does this mean that since I am now 58 years old I can access my retirement annuity anytime before retirement in 2021 or in 2015?
Answer:
Samuel,
With a retirement annuity, you can access your savings from age 55 onward, irrespective of the maturity date or your expected retirement date. However, if you have contracted to pay premiums until the retirement annuity's maturity date, you may incur an early termination charge, to recover any upfront costs, that have not yet been fully recovered.
