I am 51 years old but thinking of quitting my job. I have been at this job for 26 years and have a retirement fund of R4,4million. If I put this into a preservation fund and take a lump-sum amount of R1,5million out - will I still be able to get monthly salary from this fund. If so, how much will I get on monthly basis.
Marsh, A preservation fund cannot pay you a monthly salary. You are allowed just one (full or partial) withdrawal before retirement (earliest age 55). You should take R1,5m from you retirement fund as cash and preserve the rest. You then still have the option of making another withdrawal before you hit 55. Note that R4,4m is probably not as much money as you think it is (esp given your young age). Please use our Retirement Calculator to see what sustainable income this money will afford.