Useful tips

What is a Section 14 transfer?

What is a Section 14 transfer?

A Section 14 transfer is the transfer of retirement fund benefits from one retirement fund to another in terms of Section 14 of the Pension Funds Act. Section 14 transfers will either follow the Section 14.1 or 14.8 process.

How much do you need to retire comfortably in South Africa?

Based on research, the recommendation is to target at least 60% of income before retirement. Aiming for 75% will ensure that you are more likely to retire comfortably.

How much money do you need to retire without pension?

Retirement experts have offered various rules of thumb about how much you need to save: somewhere near $1 million, 80% to 90% of your annual pre-retirement income, 12 times your pre-retirement salary.

How does Sanlam retirement annuity work?

The retirement benefit of the Sanlam Retirement Annuity is equal to the fund value of the plan less the transaction charge, if applicable. According to current legislation, up to one-third of the retirement benefit may be taken as a lump sum. The balance must be used to provide regular pension payments.

How long does it take for a provident fund to be paid out?

Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 14 to 21 business days to receive your provident fund pay-out.

How do I transfer my retirement funds from one company to another?

A direct 401(k) rollover gives you the option to transfer funds from your old plan directly into your new employer’s 401(k) plan without incurring taxes or penalties. You can then work with your new employer’s plan administrator to select how to allocate your savings into the new investment options.

Can I take money out of my retirement without penalty?

The IRS allows penalty-free withdrawals from retirement accounts after age 59 ½ and requires withdrawals after age 72 (these are called Required Minimum Distributions, or RMDs). There are some exceptions to these rules for 401ks and other qualified plans. Try to think of your retirement savings accounts like a pension.

What happens if you cancel your retirement annuity?

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.

Why do I keep raiding my retirement account?

If you’re constantly raiding your retirement account to cover unexpected costs, it’s an obvious sign that you might need to defer your contributions and work on building up some cash reserves instead.

Is it good idea to suspend contributions to 401k?

If you’re not sure whether it makes sense to temporarily suspend your contributions, consider how much you’re paying in interest versus the kind of returns you’re getting on your investments.

How to prepare for a federal retirement move?

Federal Retirement Moving Checklist Moving? Use this tool to help you prepare for moving and then conduct any relevant transactions after your move. Start here for retirement and annuity help. Get answers to your questions, learn about popular topics, and find resources for more support. Information on Court-Ordered Benefits for former spouses.

Are there any regulations on retirement plan fees?

The Department of Labor instituted tougher regulations in 2012 to make fee disclosures more transparent but many participants still remain in the dark about how much they’re actually paying. According to a study from researchers at Yale, 16% of retirement plans analyzed had fees that completely negated the tax benefit for young savers.