Tax on Pension and Provident Fund | Living Annuity Pension Investments

RETIREING:

Calculate how much tax you will pay when you retire and withdraw up to the 1/3 lump sum from your Pension or Provident Fund

Options at Retirement

You can invest the funds you do not withdraw into one of 3 options:

A lving Annuity
A life Annuity
A guaranteed Annuity

RESIGNING AND WITHDRAWING YOUR PENSION OR PROVIDENT FUNDS

Tax before retirement age you will pay when you resign or withdraw before retirement (age 55) a lump sum from your RA, Pension- or Provident Fund

Options when you do resign and do not want to withdraw your pension or provident fund

Answer: You can invest it in a preservation fund. It has the same features as your pension or provident fund except you can make 1 part or full withdrawal before retirement.

How is the tax calculated

Privident Fund	Pension Fund	Retirement Annuity	Preferred Compensation
At Retirement The full amount can be taken as lump sum	At Retirement Only 1/3 can be taken as lump sum. 2/3 Must be invested to provide a income between 2.5% and 17.5%	At Retirement Only 1/3 can be taken as lump sum. 2/3 Must be invested to provide a income between 2.5% and 17.5%	Full amount can be taken.
Formula Z=C+E-D Z=Tax free amount C=Amount Taken D= Total tax free received from other funds E = Previously disallowed own contributions.	Formula Z=C+E-D Z=Tax free amount C=Amount Taken D= Total tax free received from other funds E = Previously disallowed own contributions.	Formula Z=C+E-D Z=Tax free amount C=Amount Taken D= Total tax free received from other funds E = Previously disallowed own contributions.	R30 000 less tax free lump sums previously received. Provided that : recipient at least 55 ; or termination due to superannuation, ill health or other infirmity; or termination due to employer ceasing business or redundancy as a result of employer’s general reduction in personnel and, in the case of a company, the employee was not a director and shareholder with more than 5 % of ext