The Impact of Cashing Out Your Retirement Savings
Changing jobs is normal. but doing so brings temptation.
One of the issues we face along the way is cashing out accumulated retirement savings when resigning. The consequences of this can be disastrous.
The option of taking everything in cash is very tempting, as human nature kicks in and we start thinking about everything we can do with that money.
It is easy to focus on short-term satisfaction rather than weighing up the long-term benefits. The scenario below shows the impact of withdrawing your benefits.
By withdrawing R261 972, Thembi has R1 million less at retirement, which translates into approximately R4 500 less income per month.