What are the consequences of canceling my retirement annuity?


Question:

What will happen if, due to unemployment and still being under the age of 55 years, I decide to cancel my retirement annuity policy?

Answer:

Lisa,

If you cancel the policy before maturity date (normally in the year you turn 55), the policy will be made "paid-up". You may incur an early termination charge (an accelerated recovery of upfront fees), although the closer you are to maturity date, the lower this should be. Your money will stay invested as before. You will have to wait until you turn 55 before you can claim your retirement annuity, at which point you will have to use two-thirds to buy an annuity.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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