What Happens to Your Retirement Savings When You Change Jobs - Moneyweb & 10X

One of the biggest financial decisions you’ll make during your career is what to do with your company pension or provident fund, and it usually comes up right when you’re already juggling the stress of changing jobs. In this webinar Moneyweb's Simon Brown and 10X Investments’ Brett Mackay unpack your options when leaving a job, from preservation funds to retirement annuities, and cashing out.

Here is a quick summary of what is covered:

• How to make smart choices with preservation and pension funds
• Common pitfalls that derail retirement savings
• How to avoid high fees and poor fund performance
• Proven strategies to grow your money even during career shifts

After watching, use our Preservation Fund calculator to see how your decisions could shape your future retirement.

Don't have time to watch the whole recording? Read through our quick breakdown of key moments and jump to the parts relevant to you:

The Core Problem: What Happens When You Change Jobs?

[03:08] Most people resign without realising they have a critical financial decision to make: what to do with their pension or provident fund. This decision can have a long-term impact on your ability to retire comfortably. Simon and Brett explain why it matters — no matter your age or income bracket.

The Main Options When Resigning

[03:08] Brett walks through the four options available when you leave a company:

1. Transfer to your new employer’s fund
2. Preserve it in the current fund
3. Transfer to a personal preservation fund
4. Withdraw the money (with tax implications)

He also explains how these options apply differently depending on your next move, whether you're going freelance, joining a startup, or taking a career break.

The Danger of Cashing Out

[07:26] Tempted to withdraw your savings? A case study shows how withdrawing R144,000 at age 35 leaves one investor with R400,000 less at retirement compared to someone who preserved the funds. This section offers a realistic look at the true cost of short-term thinking.

What is a Preservation Fund?

[10:29] Preservation funds help your pension, provident or retirement savings keep growing until retirement. With most South Africans changing jobs multiple times, they offer a smart way to move your retirement savings from one employer to the next, or to a provider you choose.

Brett breaks down how preservation funds work, who they’re for, and how they help you keep your retirement money invested and growing. He explains the difference between pension and provident preservation funds, and why they are especially useful if your new employer does not offer a retirement benefit.

Key Benefit: Tax-Free Transfer

[11:09] One of the most compelling benefits of a preservation fund is that you can transfer your funds without triggering any tax. Brett explains how this tax-free transfer works and why it's a key reason to avoid withdrawing your retirement savings when you leave a job.

The Hidden Risk: Fees

[17:41] High investment fees can quietly eat into your wealth over time. A simple fee difference of just 2% can lead to hundreds of thousands lost over a 40-year horizon. This section explains why cost is one of the most important factors to consider when choosing a new provider.

Actionable Advice: Demand the EAC

[18:52] The Effective Annual Cost (EAC) is the best way to compare retirement fund providers. Brett shares how to find it, what to ask your provider, and how 10X can help with a cost comparison. If you only do one thing after this webinar, make it this.

Solutions for Non-Corporate Roles

[04:59] Going freelance or joining a company that does not offer a retirement fund? Brett outlines how a personal retirement annuity (RA) can help you keep saving, stay compliant, and continue building your future wealth.

It’s Simpler Than You Think

[33:45] Worried about admin, paperwork or getting it wrong? Simon and Brett close the webinar with a reassuring message: most people overestimate the complexity. With a bit of help, you can make the right choice and protect your financial future.

Wrapping Up: Two-Pot System Tax Warning

[24:40] The new two-pot retirement system splits your contributions into retirement, savings and vested pots. Brett explains what this means for your accessibility and your taxes — especially the risk of SARS taking a big bite if you withdraw from the wrong pot at the wrong time.

Still Have Questions?

Understanding what to do with your retirement savings when changing jobs is a big step, but you don’t have to figure it out alone. Whether you're unsure about the two-pot system, preservation fund rules, or how to avoid unnecessary tax, we've answered the most common questions in our detailed FAQ.

If you are ready to chat to one of our consultants drop us a message and we'll get in touch.