Leaving your employer
Your options when leaving
What you need now can seem more important than what you might need in the future. Making use of the relevant information, support and advice available to you makes it easier to reach your shorter-term and longer-term goals.
The decisions you make when you leave your employer affect your financial future
Your retirement savings decision
How can you protect your retirement fund savings for your future self when you change jobs?
You can keep your money invested.
To help you decide, find out more about your options when leaving your employer:
Tip!
Keep your retirement savings invested whenever you change jobs instead of withdrawing this money in cash so that you can use it to buy a pension that you can live on one day when you are no longer working.
Where can I find out how much I’ve saved with Alexforbes?
Sign up or log in to our website to get this information.
You can also visit the app store to download our app.
Find out more about your retirement savings options as you prepare to start your new job
For more information that's specific to your fund or employer's benefits find out more
READ
to find out more about the importance of having a will and keeping your beneficiary nomination form updated
What happens to my retirement savings if I emigrate?
Speak to a licensed financial adviser on 0860 000 381 or email mymoneymatters. Find out what you can do with your savings and what the tax implications are.
Is someone you know leaving their employer?
Email them a link with important information that will help them through the decisions they will need to make when it comes to their retirement savings and changing employers.
Other useful information about your retirement fund
When you’re no longer earning a salary at the end of your working life, you can use your savings in your retirement fund to buy a pension that will give you regular income. Your employer has provided you with a provident or pension fund.
How does a retirement fund work?
- Every month, you, your employer or both make contributions to your fund.
- These contributions are saved towards your retirement. You can use your retirement savings to buy a pension that will give you a regular income in retirement.
How much your pension will be depends on:
- how much you or your employer contribute during your working life
- how investments have performed
- whether you keep your retirement savings invested instead of taking them in cash when you change jobs
- the cost of buying a pension when you retire
A benefit statement shows:
- how much you’ve saved so far for retirement
- the pension you can expect based on the information we have about you
Here’s an explanation of your benefit statement.
View your benefit statement by logging onto the Alexforbes website or by downloading the AF app on the Apple App Site or the Google Play Store.
If you decide to withdraw, rather than preserve your retirement savings, this is how you’ll be taxed: During your lifetime, you can take a total of R500 000 of your retirement savings tax free on retirement. However, all amounts you withdraw in cash (exceeding R25 000) before retirement will reduce this amount. How much you are taxed depends on how much you take and when you take it.
SARS sets the amount of tax you pay on any amount you withdraw. This can change from time to time. The latest information is available on SARS’ website. A financial adviser can help you work out how much tax you may need to pay if you plan on withdrawing any of your retirement savings in cash when you leave your job.
If you decide to withdraw any of your retirement savings in cash if you are retrenched, you may have to pay tax. SARS sets the amount of tax you pay on any amount you withdraw, depending on how your employer has classified your retrenchment. The rate of tax you must pay changes from time to time. This information is available on SARS’ website. A financial adviser can help you work out how much tax you may need to pay if you plan on withdrawing any of your retirement savings in cash when you have been retrenched.
It is especially important to have the support of a financial adviser if you have been retrenched, especially if you don’t find another job straight away or think you’ll struggle to cope financially. A financial adviser can help you make the most of what you have and try to keep as much of your retirement savings invested for your future self at the same time.
My retirement savings will stay invested so that they can carry on growing.
It is very important for you to keep your contact and other details up to date with Alexforbes so that you can keep receiving information about your retirement savings.
Please get in touch with the Client Contact Centre to update your details.