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 my employer refuse to process my provident fund?

I have resigned with immediate effect and am struggling with the HR department regarding notice. I have a provident fund under 10x. Can my employer refuse to process my provident fund to you for the claims? Can I just deal directly with 10x regarding the payout and bypass my employer. How soon can I do this if I decide to deal with 10x directly as I am aware that the documents required are proof of banking details as well as an ID copy.

Does a preservation fund pay a monthly salary?

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.

How much interest will my investment earn?

How much monthly interest would I earn on an investment of R800,000? We are about sell our house, our main investment, which is fully paid. We expect to get in the region of R1.2m of which we want to invest the above amount, and then rent a small apartment in a security village. We are hoping that the interest earned would contribute towards the rent. Is this viable? We are 60 & 59 respectively and I am still working.

Can I take the whole amount of my preservation fund payout as cash?

My preservation fund from Allan Gray pays out Nov 2015. Will I be able to get the whole amount or only a portion? Also, I'm trying to find someone private to borrow an amount from to settle my expensive debt (credit cards etc), and will make that person my beneficiary on the Preservation Fund, until it pays out, by which time I will the be able to re-pay the loann immediately. I basically need the cash loan for a year, to get out of this high interest debt that I'm in. One pays and pays, but never seem to go forward,...

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