How will taking cash from my retirement savings impact on my future?

With only 6% of South Africans able to retire comfortably, now more than ever, it is vital to resist the need to make a withdrawal from your retirement fund. 

It’s not easy to think so far ahead into the future, especially when facing financial problems today. It takes a lot of self-discipline to look out for your old age when you are young, and it helps if you understand the importance and the impact of your decisions today.

Even before the pandemic, research showed that many members feel the need to access part of their savings to handle emergency situations.

However, it's important to understand the associated risks that you could be exposed to if you use your retirement savings for anything other than your actual retirement. 

By using your benefit before you retire, you:

You will also incur tax penalties and you will likely lose out on the tax-free portion when you ultimately retire one day, if you withdraw a portion of your benefit in cash before you retire.