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 a pension fund be transferred to a preservation fund?

Upon retirement, can a pension fund be transferred to a preservation fund? If not, why? If so, please advise where "authorised" in the tax act.

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