How the process to make withdrawals from the savings ‘pot’ will work

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Retirement fund members expecting to withdraw some of their money once the two-pot system kicks in on 1 September should familiarise themselves with the withdrawal requirements and processes, says Adri Messerschmidt, senior policy adviser at the Association for Savings and Investment South Africa (ASISA).

The new two-pot system is being implemented to give members access to some of their retirement savings in times of great need while, at the same time, forcing the preservation of two-thirds of retirement savings from 1 September 2024, Messerschmidt says.

“It is important to understand that absolutely nothing changes for retirement savings made until 31 August 2024. Your current rights remain protected in the vested component, and there is no need to panic and resign to cash in your retirement savings made before the implementation of the two-pot system.”

Messerschmidt adds that 10%, to a maximum of R30 000, will be moved from members’ existing retirement savings (vested component) into their new savings component from 1 September 2024. This is a once-off event aimed at giving members the opportunity to withdraw some money if they are in great financial difficulty.

The withdrawal process will be determined by individual retirement funds, Messerschmidt says.

“The first step is to ensure your retirement fund has your current contact details. If your fund cannot communicate with you, you will likely miss important announcements regarding the withdrawal process.”

Messerschmidt says if you have not heard from your fund in a while or have not received your benefit statements, you need to speak to your retirement fund and check that your contact details are up to date.

“At the same time, also check that your personal details are correct. If the spelling of your full name on your fund’s record differs from your identity document, your application will be rejected to avoid fraud. Your full name and identity number must be the same across all records and reflect accurately on your proof of bank account document.”

What to consider before submitting a withdrawal application

Withdrawals are not allowed without a tax directive from the South African Revenue Service (SARS), Messerschmidt says.

“While retirement fund administrators will apply for a tax directive on your behalf, they can only do this if you have a valid income tax registration number. If you are not currently registered as a taxpayer, you need to register before applying for a withdrawal.”

Messerschmidt points out that while you may not currently earn enough to pay tax, a withdrawal from your savings component is considered income, and if it pushes you into a higher tax bracket, you will have to pay tax on the withdrawal. This is why you must be registered as a taxpayer before submitting a savings component withdrawal application.

She cautions taxpayers who owe SARS taxes, penalties, or interest on outstanding taxes to expect that these debts may be settled from any savings component withdrawals. “This may mean a much lower payout than you had expected.”

Once a fund administrator has applied for a tax directive, SARS rules state that the withdrawal process cannot be stopped, Messerschmidt says.

“You cannot change your mind once you see the tax implications of your withdrawal request. It is also important to note that savings pot withdrawals may attract an administration fee to be determined by your fund’s administrator.”

Messerschmidt says it is important to consider the full impact of making a withdrawal and to weigh up whether it is worth dipping into your retirement savings.

What must happen before withdrawal applications can be processed?

If the rules of a retirement fund have been updated to enable the two-pot retirement system and approved by the FSCA by 1 September 2024 (a Sunday), the retirement fund can update its administration systems from Monday, 2 September.

Messerschmidt says fund administrators will do the “seeding” calculations and transfer 10% (to a maximum of R30 000) of each member’s existing retirement savings on 31 August 2024 into the savings component.

In terms of the Revenue Laws Amendment Act – the law enabling the two-pot retirement system – the seed capital can be allocated on or after 1 September 2024 provided the calculations are based on the value on 31 August 2024.

“Since fund administrators will have to do this for millions of retirement fund members, this will take some time. Only once the administration systems have been updated and the seeding calculation done will members have a balance in their savings pot to withdraw.”

Messerschmidt says it is important to note that the balance in the savings component must be R2 000 or more before a withdrawal can be made. Tax will be deducted from the withdrawal amount, and administration costs could be applied. Qualifying fund members must submit an application form to their retirement funds before they can withdraw from their savings component.

“This will not be an automatic process and retirement fund members will not receive an automatic deposit into their bank accounts. The fact that the money is available for withdrawal in the savings pot does not mean it will automatically be paid out.”

How long will the withdrawal process take?

Once the retirement fund has implemented the new system and the fund administrator has transferred the “seeding” money into the savings component, qualifying fund members can submit their applications according to the process communicated by their fund or the fund administrator.

Messerschmidt says once a fund member has submitted the application form for a savings component withdrawal, the following steps will determine how long it will take before the fund member receives a payout:

Once the retirement fund or the fund administrator receives the application form, a member verification process will be activated to prevent fraud. If the personal details on the application form do not match the details on the fund’s records, the application will be rejected. To prevent unnecessary delays, fund members should verify their details with their retirement funds before 1 September 2024.

If the member has been successfully verified, has provided the information requested on the application form and a tax number, and has at least R2 000 available in the savings component for withdrawal, the fund administrator will apply for a tax directive from SARS.

SARS will provide a tax directive indicating how much tax, if any, is payable and whether any outstanding taxes, penalties, and interest are payable to SARS. Money owed to SARS, together with tax payable on the withdrawal, will be deducted from the requested withdrawal amount first. The fund administrator could also deduct an administration fee.

The administrator will make these deductions and pay the balance into the member’s bank account. The payment will only be made into verified bank accounts to prevent fraud.

Messerschmidt says this process can take several working days, provided there are no snags, such as unverified details or incomplete application forms. In addition, fund administrators are expecting large volumes of applications, which is likely to result in delays.

“We are therefore requesting fund members to be patient, especially in the first few weeks following the implementation date of 1 September 2024.”

Withdrawals will cost you and should be a last resort

Messerschmidt reminds retirement fund members carefully to weigh up the pros and cons of applying for a withdrawal before submitting the application form.

“If you are not sure about your potential tax liability and what to do, ask your retirement fund or financial adviser for guidance before applying for a withdrawal.”

She reminds retirement fund members that the money in all the components – the vested, savings, and retirement components – should be preserved at all costs unless there is a significant financial emergency.

“Any money withdrawn before your retirement will not only cost you in taxes and fees but will also reduce the money available to you when you retire.”

132 thoughts on “How the process to make withdrawals from the savings ‘pot’ will work

  1. SARS are in for big payday at the end of September.

    1. I want to know who must get in this pot system coz some people they said you must earn R900 000,00 so that you can qualify to draw in this pot system, so please I will be happy if I can get good explanation from you please.

      1. You don’t need to earn a certain amount to be part of the two-pot system.

        1. In great financial difficulty: and you’re restricted to cash out R30000? That’s ridiculous.

          1. After tax what the heck can you do with that little money?? It will barely help us… they could have increased this amount

          2. Clearly this is not about helping us but raising funds for taxman…

        2. Please confirm how much one should have in their fund to receive the max amount of 30k. I have just over 75k. How much will be in my savings pot

          1. 10% of R75 000 = R7 500 transfer to the savings pot.

      2. No truth R100000 @ 10% get R10000

      3. You only need to have at least 20K on your Retirement Savings aka vested pot, which translates to R2K (10% of your retirement savings) which is a minimum withdrawable amount one can make from the retirement savings pot. If on your vested pot you have less than 20K then hard luck you can wait for the following year and try again..

      4. Everybody currently contributing to pension fund will get the 2 pot system and a 10% max R30k will be transferred from the current vesting pot to savings pot.

  2. GEPF FUND IS NOT COMMUNICATING WITH US,,OLD MUTUAL IS READY,,EVERYTHING CAN BE DONE ON WHATSAPP,,,GEPF,WHATS THEIR PROCESS

    1. They self service is not even working yoooh ai we will het our money next year..I foresee danger here

    2. Useless that one full of Tsotsi s..

  3. I can’t wait to see what will happen onthat day is come.

  4. Can they start with the process already so that we don’t get frustrated by the process itself

  5. How does this affect employees who retired in 2021 and were placed on life annuity and who placed more than a third of their pension money into a life annuity before two pot system kicked in.

    1. The two-pot system only affects people who are still contributing to a fund. The system has no impact on people who have retired.

      1. I see the two-pot system as nothing other than to rob employees by the states through taxes. When the “two-potsystem” introduced, we’ve been told about alleviating financial burdens who are indebted, to cope with the cost of of living and stuff. Example, Peter has got R467.000 debt government says you only qualify forR30.000. What difference will R30.000 make in case of Peter. SARS is also going to tax Peter again if Peter owes it. There is also administration fee to be employed. Withdrawal will also diminish the amount of Peter when Peter retires. Actually, what is the significance of this system to the employees, because it is carefully designed to rob employees of their money. Let government allow everybody who wishes to retire voluntarily, whether the employee is 50-60, because employees have their notches, and will be paid based on their notches rather than suffer their whole lives with no promotions in the departments, such as Correctional Services.
        This government does not care about the people.

        1. Totally agree, now they have put all these restrictions and they keep on implying that it will cost us and looks like the tax man is going to be one happy man, I really don’t understand why they implemented the this 2 pot system because it doesn’t look like it is going to help us rather put us in a worse off position. They are also trying so hard to discourage people to withdraw as well. This is not going to help anyone at all

          1. I am around sixty something still working.I want to resign
            before this Pot System.Will i get the whole part of what is due to me?

          2. The value of your retirement savings in the fund at 31 August 2024 will be allocated to the vested pot. You can withdraw everything in the vested pot if you resign before 1 September. But you can still withdraw everything in the vested pot if you resign after 1 September, so why resign?

        2. Totaly agree, it a system designed to collet more taxes. Take this example, I need R30 000 to invest in a tax free account for my child education. But I am gonna be taxed more now, because of the so called pot system. Simple maths of 20 to 25% plus fees on
          R30 000. I feel sorry for those who don’t know.

        3. This is the way of government for making money, if you still remember that when these pots were proposed, they said that they expect trillion from tax payers and that money will help to save SOEs.

    2. Hi Peter, the two-pot system is only applicable on pre-retirement products. Life annuities are one of the post-retirement products, therefore no effect on retirees.

    3. They will not be affected. The 2 pot system is a pre retirement arrangement.

  6. If there is R500 000 in the savings component is it possible to withdraw all of it

    1. Yes, if the money in your savings component builds up to R500 000, you can withdraw the entire amount once a tax year. Note, though, that when the two-pot system starts in September, the most that can be in the savings component is R30 000 (transferred from the vested component). Thereafter, one-third of your contributions will be allocated to the savings component.

    2. Maximum R30k lol

      1. Our Government it’s unfair why they put SARS in that change while we owe more than that in banks mean sars will take more till u get like R25k 5k is for tax it’s unfair at last our Government is failing us a lot SARS must not deduct cs its not a salary it’s pension money

        1. People are actually discouraged to withdraw money before retirement and those doing so must withdraw under extreme emergency conditions.

  7. I understand that my vested pot won’t be getting monies anymore,as the two pots, i.e savings and investment pots will be the ones getting monies.so can I withdraw my vested monies and reinvest it in my present retirement annuity

    1. In order to access the money in your vested component in an occupational retirement fund before retirement, you need to resign or be dismissed or retrenched. In those cases, you can access all the money in your vested component and re-invest it elsewhere if you wish. Your current RA (unless it is a “legacy” RA) will also be subject to the two-pot system, with vested, savings, and retirement components. I urge you to obtain financial advice before contemplating making a withdrawal from your vested component, particularly around the tax implications and the impact on your retirement income.

    2. Does this mean, if I I resign after the 31st of August, I will be able to get all the money accumulated up to the 31st of August?

  8. I have been appointed from 01/10/ 2023 do I qualify for the pot system?

    1. Yes, if you belong to retirement fund, you qualify.

      1. Mark there is a rumour that people we are 55years and above won’t receive the fund they rather retire is it true

        1. There is no basis for that rumour.

    2. Yes you qualify however your fund would not have build much for you to withdraw.

  9. Do I communicate with my HR or directly with Fund administrator if I want to apply for a withdrawal? I’m with Liberty.

    1. How does your fund normally communicate with you? If you receive communication directly from the fund, the application should be lodged with fund, otherwise go to the administrator.

      1. Starvation getting worse😢

  10. So which pot and what is the maximum can 1 require

  11. Hi I want to know I had ritement annuity which is paid up can I withdraw the amount as according two pot rules mine is at sanlam

    1. Yes, you can withdraw from the RA’s savings pot. Whether there is money to withdraw will depend on how much can be transferred to the savings pot by the fund. The most that can be transferred is R30 000.

    2. Please check your balance if it’s less than R247500 you can withdraw but if it’s more then it will go into your Vesting Pot adding to your other pension contributions. Only 10% max R30k can be transferred to the savings pot for withdrawal.

  12. We are allowed to withdraw once till we reach retirement time?

    1. Yes, you can make one withdrawal per tax year until you reach retirement, as long as you have at least R2000 to withdraw.

    2. What about people who turned 55 in March 2021, but still working?

      1. It doesn’t matter what age you are. If you are contributing to a retirement fund, the two-pot system applies.

        1. Members of the Provident Fund who were at the age of 55 and above on the 1st of March 2021 are exempted from the Two-Pot System, but if they want to join, they can join. Please double click on that one.

      2. Those who were at the age of 55 or above on the 1st of March 2021, being members of a Provident Fund, can choose to join the Two Pot system or continue with the old system.

  13. If I borrowed home loan under my pension fund do I qualify to a two pot

    1. Yes, you are still included.

  14. What happened if you past away? Will your family still benefit from the retirement fund?

    1. Yes, nothing changes when it comes to beneficiaries receiving a member’s benefits.

  15. After the first year, the amount you want to withdraw from the savings pot in the subsequent years will still be a maximum of R30 000? For how long are you going to be able to access the funds?

    1. The R30 000 transfer is once-off. The balance in subsequent years will depend on how much you contribute to your fund. One-third of your contributions will be allocated to the savings pot from 1 September every time you contribute. So, if you contribute R900 a month, R300 a month will go to the savings pot. By 1 March next year (start of the new tax year), you will have R300 x 6 = R1 000 + R30 000 + the investment returns on these amounts. You can access the funds in your savings pot once every tax year (which is from 1 March to the end of February the following year).

  16. How much will you access in the subsequent year ?

    1. You can access as much as you have in the savings pot.

  17. If I don’t have annuity so I will not withdraw the money from the pot?

    1. You don’t need to have an annuity to be part of the two-pot system. You need to be a contributing member of a pension, provident, retirement annuity, or preservation fund.

      1. Members of the Provident Fund who were at the age of 55 and above on the 1st of March 2021 are exempted from the Two-Pot System, but if they want to join, they can join. Please double click on that one.

        1. Members of provident funds and provident preservation funds who were 55 years or above on the 1st of March 2021 and have remained a member of the same fund are exempted from the two-pot system. They can choose to opt in.

      2. If you have a RA and a pension or provident fund, can you withdraw from both?

        1. Yes, you can withdraw from the savings components in all the funds you belong to.

  18. I would like to find out. If I decide not to make a withdrawal from my saving pot this year. Would the balance be doubled for next year up to R60 000?

    1. The balance will not be doubled. The R30 000 transfer is once-off. The balance next year will depend on how much you contribute to your fund. One-third of your contributions will be allocated to the savings pot from 1 September every time you contribute. So, if you contribute R900 a month, R300 a month will go to the savings pot. By 1 March next year (start of the new tax year), you will have R300 x 6 = R1 000 + R30 000 + the investment returns on these amounts.

  19. So let’s say for instance you qualify for that 30 000.. how much will you be taxed, how much you should expect in your account?

    1. The answer to that question depends on your taxable income, which depends on your salary plus any other income you may be receiving.

  20. I’m would please like to know if your pension stands on 700 000 is 1/3 transferred to your vested pot and you can only access 10% of it to a maximum of 30 000 in the savings pot(transferred from vested to savings)

    1. The transfer is not 1/3. It is 10% up to a maximum of R30 000. If your pension is R700 000, the most that will be transferred is R30 000.

  21. I want to know if I withdraw 30000 Will I be taxed more on my salary every month

    1. The R30 000 less admin fee will be added to your taxable income. You won’t be taxed more every month but the tax will be deducted when the withdrawal is made. How much more tax you will pay depends on your current income tax bracket.

  22. If I remain unwithdraw this this tax year how much will i accumulate per month going forward.

    1. One-third of your contributions to your fund will go the savings pot whenever you contribute. The contributions will earn investment returns. The actual amount you will have next tax year or whenever depends on what a third of your contributions is.

  23. Is it possible to withdraw more than 30k on the savings pot, especially if more money was allocated to the savings pot

    1. When the two-pot system is implemented, the most that will be in your savings pot is R30 000. Each month from 1 September, one-third of your contributions will be allocated to the savings pot. You can withdraw as much as you want from the savings pot in any tax year.

  24. Hi. I’m decided not to withdraw any money as im turning65 next year. Is it a good idea ?

  25. Hi. I’m decided not to withdraw any money as im turning65 next year. Is it a good idea ?

    1. You should obtain financial advice from an adviser who can look at your specific circumstances. That said, the commonly accepted view is that it is best not to make any withdrawals from your savings pot before retirement.

  26. If i withdraw from the saving pot, will the tax free amount of 550 000 not apply any more when i go on pension, will i be taxed on the whole amount

    1. No, the tax-free amount will still apply. Of course, you must have money left in the savings pot when you reach retirement for the tax-free amount to be applied to the balance in the pot.

      1. The R550k tax free at retirement will also apply to the money in the vested pot.

        1. Correct, thank you for pointing that out.

  27. Good morning so how much should one have in their pension to get the full amount in their vested pot?

    1. As of 1 September, 10% of a member’s retirement savings, up to R30 000, will be allocated to the savings component. The amount in the savings component can be withdrawn at any time if the withdrawal is R2 000 or more. If the balance in the savings component is less than R2 000, no withdrawal is allowed until that savings component grows to R2 000. This means that your fund credit in your vested pot must be at least R20 000 on 31 August 2024 to have the minimum amount available immediately the two-pot system takes effect.

  28. I have two anuities that I stoped contributing to in 2014. One has under. R20 000 in and the other one under R100 000. Can I withdraw from them or wil that money just lay there till I retire?

    1. The minimum required withdrawal from the savings pot is R2000. Since at least R20 000 is required in the vested pot to enable the minimum withdrawal of R2 000, you will not be able to withdraw from the RA will less than R20000 before retirement. The RA with slightly less than R100000 will be seeded up to R30000, which you can withdraw before retirement. You are not obliged to withdraw anything before you retire. At retirement, you can take whatever is in the savings pots of both RAs as a cash lump sum, or you can transfer it to the funds’ retirement pots and use the money to buy an annuity.

  29. It is possible to resign still as i was about before these port thing introduced, im still not affected

    1. Yes, you can resign and your benefit in the vested pot can be withdrawn in full.

      1. Only Government is going to benefit here not the employees.
        Aowa ban…

  30. I am 46 and unemployed. I don’t contribute to my Annuity anymore. I have R25000 at my INSTITUTION. How much can I withdraw?

    1. 10% of R25 000 will be transferred to your savings component, which is R2 500, which you can withdraw.

    2. This thing 2 pot is very painful really is not fair is like abuse 😢 we work hard end the end our gavament kill us

  31. Can you please calculate axactly how much one must atleat have on their retirement fund when devided by 10% to be sure that they will definately have 30k in their savings pot before tax.
    Please give an example of a minimum amount the person should have.

    1. The amount in the savings component can be withdrawn at any time if the withdrawal is R2 000 or more. If the balance in the savings component is less than R2 000, no withdrawal is allowed until that savings component grows to R2 000. This means that your fund credit must be at least R20 000 on 31 August 2024 to have the minimum amount available immediately.

      1. Yes i understand, but what Im asking is how much should i have currently or before 1September 2024 in my retirement savings +- to be able to have 30 000 in my savings component before tax?

        For example: if i have 350 000 in my retirement pot currently of which its 35 000 @ 10% , will i then have 35 000 in my savings component provided that can only withdraw a maximum of 30 000?

        1. The amount that will actually be transferred to seed your savings pot is 10% capped at R30 000. There is no limit on how much you can withdraw. Let’s say R30k is put into your savings pot around 1 September. In September, you can effectively only withdraw R30K because that’s all there is in the savings pot initially. Now in October, when a third of your retirement fund contribution is allocated to your savings pot, you will have more money. Just as an example, if a third of your contributions is R300, then in October you will have R30 300. (It may be more because this money also earns a return.) You can withdraw the entire R30300 in October if you want.

    2. Hi do I qualify to apply for that 10% and would I get if I resigned before 1 September 2024 for example let say I resigned February 2024 can I withdraw from that saving component?

  32. Can I deposit more money into the savings pot?

    1. One-third of your retirement contributions are automatically allocated to the savings pot. You can add more money than is normally deducted by your employer or that you pay in monthly. But remember, one-third of the total contribution must go to the savings pot. So, if you want to top up your retirement fund by, for example, R900, the fund will only put R300 (one-third) in the savings pot, and rest must go to the retirement pot.

  33. If I’m over 55 years I know we have to apply for 2 pot system. If I decide to go through with R30 000 does it affect the growth of my total pension fund at retirement

    1. The only fund members who are automatically excluded from the two-pot system are members of provident or provident preservation funds who were 55 years or older on 1 March 2021 and have remained a member of the same fund. They will have to opt in if they want to join. Everyone else who contributes to a fund is automatically part of the two-pot system. If you are part of the two-pot system, the fund will automatically transfer R30 000 into your savings component. This must be done by law. All your retirement money in the three pots is for retirement, so it should all be invested as such. Allocating the money to the different pots has no effect on the investment strategy followed by the fund.

  34. How does one get the application forms from and when will the application forms be made available?

    1. As with any retirement benefit withdrawal, you either go through your employer (if your employer sends you communication from the fund) or contact the fund directly.

  35. I owe SARS 40 000.so if I withdraw 30 000 I won’t get anything because tax man take all of his money first?

    1. It is possible that if you submit a withdrawal claim, SARS will deduct the money you owe. The step around this is enter a repayment plan agreement with SARS.

  36. My salary was garnish, my question is will sars deduct my balance from the two pot system

  37. Must I get da forms from my company or from who I have my funds with.or can I go to der office to fill in da forms for da 2pot

  38. My partner resigned 7 years ago and doesn’t know where to find out where his funds are. Any advise of where to go and where to start long and how much he currently has? Also, that company has moved abroad and has no details thereof.

  39. My partner resigned 7 years ago and doesn’t know where to find out where his funds are. Any advise of where to go and where to start looking and how much he currently has? Also, that company has moved abroad and has no details thereof.

    1. Have you contacted his retirement fund or the fund’s administrator?
      You can also try to the FSCA’s unclaimed benefits database: https://www.fsca.co.za/Customers/Pages/Unclaimed-Benefits.aspx

  40. Is it only for government employees or any private sector?

    1. Two pots apply to government and private sector fund members.

  41. Hi..what will if I am on a bad credit record? .2 what is backed-loan as said by Fnb? Regai Khuzwayo M

    1. Your credit status does not affect your ability to withdraw money from the savings pot.
      I think FNB might be referring to a loan that is guaranteed by your retirement savings.

  42. How does one apply for the two pots while still undergoing a transfer? I’m currently under section 197
    The transfer of funds still not completed transfer happened in April and both companies are using different investment companies
    Do I still qualify

    1. Yes, you do. The FSCA is finalising guidelines on how fund administrators must deal with transfers that have not been completed when the two-pots system is being implemented.

  43. I understand there will be three pots in actual fact if I am dismissed can I claim everything at once?

    1. On dismissal, you can withdraw your money from the vested pot and from the savings pot if you have not already made a withdrawal from the savings pot in that tax year.

  44. Can I withdraw R30 000/10% from my preservation fund(Old mutual), and also withdraw 10% from my pension fund(GEPF)?

    1. Yes.

  45. Wow

  46. Hi,
    1.If I have R440 000 in my fund, am I correct in saying that only R30 000 will be transferred to my Savings Pot.
    2.If so, will I be able to withdraw the entire R30 000 from my Savings Pot at the end of September.
    3. I understand that we have to pay tax and pay administrative fees, can you assist to determine what percentage will be allocated to administrative fees.
    4.Also if I resign after the 1st September, will I be able to get all of my funds that are in my Vested Pot. I am 53 years old.
    5.If I retire at 63,what % will I get from my vested Pot and how much thereafter will the government pay on a monthly basis

    1. 1. Yes.
      2. Yes.
      3. The fee will depend on each administrator. It is not legislated. It seems the average fee will be about R350.
      4. Yes, you will.
      5. I am not sure what you mean by “how much the government will pay”? Do you belong to the GEPF? If you belong to private sector defined contribution fund, you can take up to one-third of your vested pot in cash, and the rest must be used to buy a pension.

      1. Hi do I qualify to apply for that 10% and would I get if I resigned before 1 September 2024 for example let say I resigned February 2024 can I withdraw from that saving component?

        1. Members do not have to apply for the 10% (capped at R30 000) transfer to the savings pot. The fund or its administrator will do this automatically.
          When a member resigns before retirement age, you can choose to:
          1. Stay in your old employer’s retirement fund and become a paid-up member, or
          2. Transfer your resignation benefit to your new employer’s retirement fund, or
          3. Transfer your resignation benefit to a retirement annuity fund, or
          4. Transfer your resignation benefit to a preservation fund, or
          5. Transfer a part of your resignation benefit to another fund and take the rest as a lump sum, or
          6. Take your entire resignation benefit as a lump sum.
          If you chose options 1, 2, 3, 4, or 5, then these funds will have a savings component from which you can make a withdrawal.

          1. Thank for the using information, but some of the option with Sanlam I don’t have like option number 5,6 which I needed money after I resigned but Sanlam told me that I can’t get my money since it exceeded 15000. The is any way that I can get lum sum or part of it?

          2. What type of fund do you belong to with Sanlam? Are you sure you belong to a provident fund, or is it a retirement annuity (RA) fund? If you belong to an RA fund, you cannot withdraw a lump sum before the age of 55 unless the total balance of your RA is less than R15 000, or you take early retirement because of ill health or permanent disability.

  47. I owe sars R42 000 and we have an aggrement payment that sars deduct every month from my salary so from that R30 000 will sars deduct the outstanding?

    1. It seems that if you have already entered a payment arrangement with SARS, they will not deduct everything before allowing the payment of the R30 000.

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