What options do I have regarding the payment of my retirement benefit?

You have the following options with your retirement benefit:

If you are retiring from a pension fund, you may:

• Leave the benefit in the fund
• Receive a living annuity or life annuity from the fund (if these options are available)
• Use all the money to buy a pension of your choice (annuity) from another approved fund (if this option is available)
• Take a maximum of one-third as a cash lump sum and use the balance to buy a pension of your choice (annuity)

If your total benefit is equal to or less than R247 500, you may take the full amount in cash.

If you are retiring  from a provident fund, you may:

• Leave the benefit in the fund
• Receive a living annuity or a life annuity from the fund (if these options are available)
• Use the amount to buy a pension of your choice (annuity) from another approved fund (if this option is available)
• Combine the two, i.e. take some cash and use the rest to buy a pension
• Take the full amount as a cash lump sum