What is Preservation Fund?
A preservation fund is a fund into which retirement fund benefits may be transferred and preserved when a member of a pension or provident fund terminates his services (but does not retire), or when a fund is dissolved in terms of section 28 of the Pension Funds Act, No.
Best Preservation Fund In South Africa
Below are some of the Best Preservation Funds.
Allan Gray | 10x | |
|---|---|---|
| Flagship high equity index fund | Nedgroup Investments Core Diversified Fund | 10x High Equity Index Fund |
| Total Investment cost of above fund (incl VAT) | 0.40% p.a. | Up to 0.115% p.a. |
How do I choose a preservation fund?
The choice of a preservation fund or a retirement annuity will depend on:
- the possible need for cash prior to retirement;
- the tax-free portions allowed at retirement by each of the funds;
- the member’s personal and tax planning requirements.
Can you withdraw all your money from a preservation fund?
You are allowed a full or partial withdrawal from your preservation fund before retirement. The earliest retirement date is usually 55, although this is subject to the fund rules. These issues are important because they determine if you can a) make another withdrawal and b) the tax thereon.
Can I withdraw a lump sum after the preservation age?
Withdrawals from superannuation over age 60 are generally tax-free. If you have reached your preservation age, but are under age 60, some tax may be payable, depending on the tax components within your balance (tax-free/taxable) and the form in which you access your super (lump sum/income stream).