Preservation Fund FAQ

What is a preservation fund?

A preservation fund is a retirement fund in terms of the Pension Funds Act. It is a tax effective investment vehicle designed for individuals who wish to invest the proceeds of their company-sponsored retirement plan in a tax-efficient manner.You may transfer the proceeds of your pension or provident fund to a preservation fund in the event you are dismissed, retrenched, or you resign. Doing so preserves both your accumulated savings and the attached tax benefits. You can invest the proceeds from different pension or...

Can I make more than one withdrawal from my preservation fund?

I resigned and transferred my pension to an Old Mutual Pension Preservation Fund. Upon transfer I was told that I can make only one once-off withdrawal of after which I cannot withdraw again. I am unemployed and need money to pay my mortgage, before it is auctioned, and children's school fees. Can I make another withdrawal from the fund and, if so, what is the procedure?

Can financial advisors charge a fee for transferring a preservation fund?

Can financial advisors charge a fee for transferring a preservation fund?

Am I allowed a withdrawal from my preservation fund?

Hi, i was informed i would be able to take out a portion of my preservation fund in march this year. Is this correct and if so, what percentage can be taken?

Am I entitled to a once-off withdrawal after transferring to a preservation fund?

Good evening, If I sign an AOD for overpayment with my former employer will I still be entitled to a once-off withdrawal after transferring to a preservation fund. Regards Lota

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