Retirement

Normal Retirement

The School determines the normal retirement age (as stated in the school’s special rules).

 

What benefit will I receive?

You will receive your accumulated credit. Accumulated credit consists of your and the employer’s retirement contributions, less costs, plus investment returns.

 

Payment Options

You may elect to take up to 1/3rd of the total value of your pension as a cash lump sum and 2/3rds must be used to purchase an annuity (Life or Living) of your choice from a registered insurer. Remember lump sum benefits taken in cash are taxed.

In terms of the law the Fund also offers an annuity strategy. It is important to note that this is not an automatic default arrangement and members will have to make an active selection/choice to Opt-In to this strategy if they want to make use of one of the two pension options offered by the Fund.

The Fund offers a Life and Living annuity option and members will receive quotations for both when they are 5 years from retirement. Members will be given retirement benefit counselling at least 3 months prior to their normal retirement age.

 

Obtain financial advice

It is advisable that you obtain financial advice from an accredited financial advisor. To find a financial advisor you can go to the Financial Planning Institute at www.fpi.co.za

 

Or call Old Mutual’s toll free number 0860 388 873

Early Retirement

With agreement from your employer you may retire early at any age within 10 years of your   normal retirement date.

 

What benefit will I receive?

You will receive your accumulated credit. Accumulated credit consists of your and the employer’s retirement contributions, less costs, plus investment returns.

 

Payment Options

You may elect to take up to 1/3rd of the total value of your pension as a cash lump sum and 2/3rds must be used to purchase an annuity (Life or Living) of your choice from a registered insurer. Remember lump sum benefits taken in cash are taxed.

In terms of the law the Fund also offers an annuity strategy. It is important to note that this is not an automatic default arrangement and members will have to make an active selection/choice to Opt-In to this strategy if they want to make use of one of the two pension options offered by the Fund.

The Fund offers a Life and Living annuity option and members will receive quotations for both when they are 5 years from retirement. Members will be given retirement benefit counselling at least 3 months prior to their normal retirement age.

 

Late Retirement

With consent from the employer you may retire after normal retirement age.

 

What benefit will I receive?

You will receive your accumulated credit. Accumulated credit consists of your and the employer’s retirement contributions, less costs, plus investment returns.

 

Payment Options

You may elect to take up to 1/3rd of the total value of your pension as a cash lump sum and 2/3rds must be used to purchase an annuity (Life or Living) of your choice from a registered insurer. Remember lump sum benefits taken in cash are taxed.

In terms of the law the Fund also offers an annuity strategy. It is important to note that this is not an automatic default arrangement and members will have to make an active selection/choice to Opt-In to this strategy if they want to make use of one of the two pension options offered by the Fund.

The Fund offers a Life and Living annuity option and members will receive quotations for both when they are 5 years from retirement. Members will be given retirement benefit counselling at least 3 months prior to their normal retirement age.