Can I move my money?
When you invest in a retirement fund it means that your money is not normally available to you until age 55, as it is meant to provide for your retirement.
However, you can transfer your savings while they build up between the many retirement funds registered as such in South Africa.
The transfer of retirement fund benefits from one retirement fund (the transferring fund) to another (the receiving fund), in terms of section 14 of the Pension Funds Act, can be a complicated process that may take very long to be finalised.
Important things to consider:
You need to ask important questions before taking the step of moving your retirement fund benefit.
However, your financial adviser is there to help you with this – if indeed it is in your best interest to transfer your money.
The most important question to ask is: will I be better off in retirement after moving my money?
You will not be taxed if you transfer your retirement fund benefit to another retirement fund, although there could be costs, and in some instances penalties, involved.