What happens to my retirement fund after I resign?


I resigned in 2009 and only received a retirement annuity cash lump sum. I have no idea about the workings of the pension and provident fund pay-out process. Please advise on the legitimacy of the claims and closure on PF's.


If you resign, or you are retrenched, you are allowed to withdraw from your employer-sponsored retirement fund (that is a pension or provident fund). The "benefit" you can claim is the balance in your retirement account. Once you have withdrawn, you have no other claim against that fund. You cannot withdraw from a retirement annuity if you leave your employer as this product is not linked to your employment. You can only retire from a retirement annuity from age 55 onward (unless you formally emigrate or become too ill to work).

On leaving your employer, you should issue an instruction advising what to do with your accumulated savings (pay out, or transfer to a preservation or to your new employer’s retirement fund). Your employer (usually the HR department) should have the necessary instruction form.

For information about preserving your retirement fund capital, read more here.

Or, if you would prefer, speak to a consultant about the benefits of a preservation fund.

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