Question:
Want to know my pension pay out if i resign in march 2015,and tax to be deducted.
Answer:
Ngangelizwe, We have no way of knowing. It depends on how much you contributed, how much of your contribution was invested (and how much went towards your risk benefits), how your money was invested (ie what investments or asset classes you held), what returns you earned, and what fees you paid. You are taxed per the withdrawal lump sum tax table. The first R25 000 is not taxed, the balance to R660 000 is taxed at 18%, the balance to R990 000 at 27% and the remainder at 36%. This table is applied to the aggregate of your retirement fund withdrawals, ie you only receive the tax-free amount of R25 000 once.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
