Retirement funds in SA are changing – new laws come into effect on 1 March 2021
New laws affecting provident funds come into effect on 1 March.
One of the aims of the laws is to create uniformity among all the various retirement savings vehicles such as retirement annuities, pension funds and provident funds.
Trending, right now, in "business":
Currently, provident fund members can take their entire retirement benefit in cash upon retirement – they do not have to "buy" a pension.
Pension fund members must use a minimum of 66% of their retirement benefits to "buy" a pension upon retirement.
For 1 March, however, provident fund members will also be compelled to buy a pension with at least 66% of their benefits.
Contributions to provident funds made before March 2021 – plus all growth – can still be taken in cash upon retirement.
Provident fund members older than 55 remain unaffected by the changes as long as they remain with the same fund.
Found all that more than a bit confusing?
The Money Show’s Bruce Whitfield asked Warren Ingram (Personal Financial Advisor at Galileo Capital) to give more detail about the new laws affecting provident funds.
Listen to the interview in the audio below.
Source : https://www.123rf.com/photo_105972233_listen-to-us-you-small-little-kid-we-run-this-world-close-up-photo-portrait-of-joking-funky-cool-sty.html?term=retirement%2Bfunny&vti=meqzjpi61ftnuzqhhg-1-2
Naked co-founder Ernest North shares five money-saving tips to stretch your rands further than you ever imagined possible.Read More
Zero-interest shopping loans are disrupting lay-bys. The Money Show’s Bruce Whitfield interviews PayJustNow CEO Craig Newborn.Read More
"South Africa might just surprise to the upside," says Quintus Kilbourn, Head of Equities: Absa Corporate and Investment Banking.Read More
"Both are long-term savings vehicles with certain tax advantages," explains Michael Kirkpatrick of Alexander Forbes.Read More
"Eskom says prices are 30% too low," says Chris Yelland. "And it wants to charge more for generating solar power as disincentive."Read More
Sars’ news web browser is "very dangerous" and "opens up all sorts of security risks", warns Sam Wright (Tech Girl ZA).Read More
For R397 per month, you get unlimited GP visits and unlimited medication. You also get basic radiology, pathology, dentistry...Read More
The economy is old, mouldy toast. Bianca de Beer of Dialdirect Insurance shares 11 driving tips to help you make ends meet.Read More
An economist expects China growth at 9.5%, US money-printing, rising metal prices and trade- and current-account surpluses in SA.Read More
You can buy R1 (or even one cent) worth of shares. "The key to getting started is to get started," says Charles Savage.Read More