Protect Your Pension.
Avoid the Tax Trap.
When you resign, are retrenched, or retire, you have to make a critical decision about your employer pension or provident fund. Making the wrong choice can trigger massive tax penalties and destroy decades of compound growth.
The Danger of Cashing Out
Taking your retirement savings in cash when changing jobs is the biggest mistake you can make. Not only will SARS tax the withdrawal heavily (up to 36%), but you also reset your compound interest clock back to zero, making it nearly impossible to retire comfortably.
Tax-Free Transfers
Your Preservation Options
To avoid paying tax and to keep your money growing, you must transfer your funds into an approved retirement vehicle. Here are your three main options:
Preservation Fund
Transfer your money tax-free into a Pension or Provident Preservation Fund. The biggest advantage? You are allowed one partial or full withdrawal before age 55 if you face a financial emergency.
Retirement Annuity (RA)
Transfer your funds tax-free into an RA. This is a great option if you want to consolidate your savings, but remember: you cannot access these funds under any circumstances before age 55.
New Employer's Fund
If your new employer has a pension or provident fund, you can transfer your old savings directly into it tax-free. This keeps all your retirement savings in one place.
Why Use EBC For Your Transfer?
Section 14 transfers can be complex and administratively heavy. We handle the entire process for you.
We Handle the Paperwork
Transferring between funds (Section 14 transfers) involves dealing with HR, administrators, and SARS. We manage the entire administrative process from start to finish.
Independent Fund Selection
If you choose a Preservation Fund or RA, we aren't tied to one provider. We select the best-performing, lowest-cost funds from top asset managers like Allan Gray, Coronation, and Ninety One.
Holistic Tax Advice
We analyze your specific tax situation to ensure your transfer is structured in the most tax-efficient way possible, protecting your hard-earned wealth.
Make the right move with your pension.
Don't let taxes and poor decisions derail your retirement. Contact our independent wealth advisors today for a free consultation on your transfer options.
Expert, independent retirement planning.