My post, within a parastatal organisation, is being transferred to the government. I am currently weighing up the option of transferring my provident fund into the Government Employees Pension Fund , but I may opt to start fresh with the GEPF and invest my current provident fund savings in a retirement annuity or preservation fund.
Besides the medical aid advantages of government post-retirement, is there anything else I should be aware of?This is a question that perhaps needs to be viewed from the perspective of your future self, looking back. I believe the most ideal place to be in any investment portfolio is to keep your options open for the future, ensuring you have room to change strategy if needed.
You are allowed to withdraw R550 000 tax-free at retirement from your retirement portfolio, provided you have made no previous withdrawals from a retirement fund, which you can increase with your “disallowed contribution” pool.You are allowed to nominate beneficiaries on this investment vehicle as well, which makes for an excellent estate planning tool.
From an annual tax benefit and compound interest perspective, I would recommend opting for the RA. If you want to keep accessibility as an option, then the preservation fund would be a more suitable route to follow.
brink_elke PSGWealth Depends on age and years to retirement