Retirement benefit

When you reach normal retirement age (65 years) you become entitled to a benefit equal to your Member Credit Account. Your Member Credit Account is a sum that represents the total contributions made on your behalf, together with the investment returns achieved, less expenses.

If you are 55 or older, you may choose to retire early. You will still be entitled to your Member Credit Account.

The Fund also allows membership beyond normal retirement age, subject to the agreement of your employer.

The following applies for each category of your retirement savings:

Vested pot: “OLD” savings up to 31 August 2024

Savings pot: “EMERGENCY” money – only for emergencies!

Retirement pot: NO TOUCHING

You may withdraw a portion in cash.

You may withdraw the full balance in cash.

This money must be used to purchase an annuity when you retire, unless the amount is less than R165 000, in which case you can take everything in cash.

This benefit will be taxed in line with the tax table for retirement.

The annuity that you buy will be taxed as and when you receive your monthly pension income, in line with the tax tables for retirees.

Note: If you were 55 or older on 1 March 2021 (i.e. you were born before 1 March 1966) and have been a member of the UNISARF since then, your options are slightly different, unless you opted into the Two-Pot System. If you have not opted into the Two-Pot System, the Vested Pot applies to you, and you may take a portion in cash, subject to tax in line with the tax table for retirement.

When retiring, you have the following options:

If you choose to defer the date on which you will receive your benefit, please ensure that you indicate this clearly on your Retirement Option Form. As a deferred retiree, you will remain invested in the same portfolio as at retirement, unless you complete a Switch Notification Form. No further contributions can be made, and you will no longer be covered for death and disability benefits.

Any portion of your benefit that you choose to take in cash will be taxed as follows:

Lump sum Amount	Rate of Taxation
R0 – R550 000	0% of taxable income
R550 001 – R770 000	18% of taxable income above R550 000
R770 001 – R1 155 000	R39 600 + 27% of taxable income above R770 000
R1 155 001 and above	R143 550 + 36% of taxable income above R1 155 000

2024 tax year (01 March 2023 - 28 February 2024)

Any benefit previously received tax-free will be deducted from the tax-free amount.

RETIREMENT BENEFITS COUNSELLING

The Retirement Benefit Counselling team of INfund Solutions (Pty) Ltd team members can be contacted by sending an email to info@infund.co.za or by calling 021 915 3567.

To practically assist you in optimising your retirement, the board appointed INfund Solutions (Pty) Ltd to provide you with Retirement Benefit Counselling, which includes the following services:

Counselling, education and communication with you on the options available upon termination of service, be it resignation, retrenchment or retirement.

Communicate the Fund’s strategies and options made available to you in terms of: investments which include information on the default investment portfolio and any member investment options available in the Fund.

Options upon withdrawal prior to retirement, being information on becoming a paid-up member in the Fund or any other preservation options available.

Options upon retirement, being information on the Fund’s annuity strategy and other annuity options available to you upon retirement.

It is important that you engage with a retirement benefits counsellor prior to taking any financial decisions such as investment switches or upon resignation, retirement or even in the unfortunate event of you becoming ill and being placed on disability or going on early ill-health retirement. The retirement benefit counsellors have been contracted specifically to assist you in making informed decisions at these crucial times so that you do not find yourself in financial products or situations with costly unintended consequences. INfund Solutions (Pty) Ltd is not a financial services provider. Therefore the benefits counsellor will only provide you with factual information intended to place you in a position where you can make informed decisions.

This service is not just for members closer to retirement. We encourage all members, young and old, to engage with the retirement benefit counsellors. Younger members will be assisted with financial projections to determine if they are saving enough for retirement. These will in all likelihood form part of the most important decisions you will ever make. You will be equipped with information to make the right decisions, keeping your financial journey on track.

Retirement benefit

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