Question:
I am 48 years old and am really battling at work due to ill-health. I am considering leaving work. What are my options regarding early claim of my provident fund? Will it help if I get a letter from a doctor regarding my ill-health.
Answer:
Anthony,
You can resign from work, in which case your provident fund will be paid out to you (unless the fund rules require that you preserve, which is seldom the case). You don't need a doctor's certificate to resign, but you will be taxed on the withdrawal lump sum tax table, which is more onerous than the retirement lump sum tax table. To qualify for the latter (early retirement due to ill-health), you do need to be medically certified. This will require more than just a letter from your doctor; you may be asked to undergo confirming tests (at your expense). But if you are truly unable to work (unlikely as you are still working), you should rather apply for disability income (if you have this risk cover).
