Retirement Product Guide

What you will need

• What brings you here today?: Options: changing jobs or resigning; retrenched; thinking about a savings pot withdrawal; self-employed with no fund; close to retirement; just want to understand my fund.
• What does your payslip or benefit statement show?: Options: pension fund; provident fund; retirement annuity (RA); preservation fund; nothing, or I do not know.
• Your age (years)
• Do you know your savings pot and retirement pot balances? (yes_no)
• Were you 55 or older on 1 March 2021 and in a provident fund then? (yes_no_not_sure)

How it works

SCREEN 1 Your fund type: pension or provident fund = an employer fund you and often your employer pay into; RA = a fund you take out yourself, usually only accessible from 55; preservation fund = where savings from a previous employer fund can stay invested; nothing or unknown = 'Ask HR or your fund administrator which fund you belong to and for your latest benefit statement.' If fund_type = provident and age_on_1_march_2021 = yes: note 'Older provident fund members kept some of the old cash rules for money in that fund; ask your fund to confirm.' SCREEN 2 Your pots: savings pot = about one-third of contributions from 1 September 2024, can be withdrawn once a tax year, above a minimum amount, taxed at your marginal rate plus fees; retirement pot = about two-thirds, locked until retirement and mostly used to buy an income; vested pot = money saved before September 2024, follows the old rules. If pots_known = no: 'Ask your fund for your pot balances before deciding anything.' SCREEN 3 by situation: CHANGING JOBS or RETRENCHED = options are to preserve (preservation fund), transfer to the new employer's fund or an RA, or take cash from the vested pot (taxed, and the money stops growing); the retirement pot cannot be cashed out and must stay invested; the savings pot can be withdrawn under its own rules. SAVINGS POT WITHDRAWAL = show a before-you-withdraw list: is this a true emergency; how much tax and fees would be deducted (ask your fund for the net amount); every rand taken now will not grow for retirement; have you looked at other options. If the member is thinking of withdrawing to pay debt: suggest a money coach first. SELF-EMPLOYED = an RA is one common way to save for retirement with tax relief; speak to an FSCA-authorised planner about options and costs. CLOSE TO RETIREMENT = choices include a life annuity (a set income for life) or a living annuity, each with trade-offs; this is a major decision for an FSCA-authorised planner. SCREEN 4 Before any decision: update your beneficiary nomination form; get the latest benefit statement; speak to an FSCA-authorised planner, and a tax practitioner if tax is unclear. No product or provider is ever named or recommended.

What you get

• Your fund in plain words
• How your pots work
• Your options for your situation
• Questions to ask HR, your fund or a planner

What it means

• The first step is finding out which fund you belong to and getting your benefit statement.
• Cashing out the vested pot is taxed and ends that money's growth; preserving or transferring keeps it working for you.
• A savings pot withdrawal is taxed at your marginal rate and reduces your retirement money, so it is best kept for a true emergency.
• Without an employer fund, nobody is saving for your retirement unless you do; an FSCA-authorised planner can explain options.
• Choosing an annuity is one of the biggest money decisions you will make; get advice before you sign.

Next step: Want help interpreting this? Speak to an FSCA-authorised financial planner before resigning, withdrawing or choosing an annuity, or book a money coach if money pressure is pushing you to withdraw.

Runs on the device. Nothing is saved unless the member chooses.