What Happens When You Resign?

designbythink 2018, Quarter 3 Newsletter 2018

What happens to your fund credit when you resign?

If you resign, are dismissed or retrenched, you can do one of the following with your Fund credit:

1 Leave your money in the Fund. This is a new option available from 1 June 2018.
2 Take all your cash.
3 Move your money to a preservation fund.
4 Move your money to a retirement annuity.
5 Move your money to your new employer’s fund.

Studies show that only 9% of retirement fund members have enough money saved to see them through retirement. This is mainly because members don’t preserve their retirement fund benefits when they change jobs.


Leaving your money in the Fund.


Some of the main reasons why you should consider leaving your money in the Fund:

  • There is no minimum amount of money you need to have in the fund to access this option. No matter how big or small, you can leave your money in the Fund.
  • The investment fees are much lower because the trustees negotiate for the lowest fees. Also, the fees are at institutional rates and are thus significantly lower than retail rates at some of the other preservation options.

  • You can stay invested in the same investment strategy that you had while employed, so you won’t need to become familiar with a new fund and complicated investment strategy.
  • If you leave your money in the Fund when changing jobs, you can choose to have all your money paid out to you at a later stage.
  • You may also choose to have part of your money paid out to you at a later stage and the balance can be transferred to another fund or preservation fund. You cannot rejoin the Fund after that.

Leaving your money in the Fund is easy and convenient.

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