Withdraw from Retirement Annuity

In most instances it is not possible to withdraw funds from your retirement annuity fund before you turn 55. If you run into financial difficulties before then, you can stop making contributions and the benefit will stay in the fund, and grow until you retire from it.   Nowadays, the entire benefit amount in the retirement annuity (not only a third) can be withdrawn as a lump sum if the benefit is less than R7 000.  Moreover, should a member emigrate, the entire benefit can be taken as a lump sum subject to exchange control. In case of divorce, the court can also make an order in terms of which the non-member spouse may be allowed to access a portion of the benefit, subject to certain tax rules. The withdrawal tax tables apply at early withdrawal from all retirement funds, i.e. retirement annuity, pensioen, provident and preservation funds.

Summary:

Withdrawals from retirement annuities are only possible under the following circumstances before 55:   Full cash withdrawal if total fund value is smaller than R 7000 Withdrawal in terms of a valid divorce decree Full withdrawal as a result of emigration Withdrawals from pension, provident and preservation funds are only possible under the following circumstances: Full withdrawal as a result of the dissolution of the employer fund Full withdrawal as a result of the termination of pension or provident fund membership because of resignation, dismissal or retrenchment Full cash withdrawal if total fund value is smaller than R 7000 Withdrawal in terms of a valid divorce decree Full withdrawal as a result of emigration
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Withdraw from Retirement Annuity

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