Take your time and make the right decision

It's a good idea to speak to your scheme adviser or your personal financial adviser to help you decide what to do with your retirement savings. If you don't have an adviser and would like to find one in your area, please click here.

Choose the product most suitable to your needs

If you feel that a different retirement product is better suited to your needs, you may transfer your savings to another product. Allan Gray offers two retirement products:

  • The Allan Gray Retirement Annuity Fund, or
  • The Allan Gray Pension/Provident Preservation Fund

You may also move to a retirement product offered by another financial services provider.

 

What are the benefits of choosing this option?

  • You will not have to pay tax if you transfer to a retirement annuity fund, a preservation fund, and/or your new employer’s retirement fund.
  • You are not restricted to the unit trust/s your employer has selected for you. You can invest in any unit trust offered on the Allan Gray investment platform that complies with the prescribed retirement fund investment limits. 

Complete the following steps:

  1. Complete and sign the Umbrella Retirement Fund Member Exit Instruction.
  2. Complete and sign the relevant transfer form.

3. Email the above forms to instructions@allangray.co.za.

We will contact you once we have received your forms.

This option will reduce your income in retirement

When you leave your employer, you have the option of making a once-off withdrawal of some or all of your retirement savings. If you withdraw a portion, the balance will need to be transferred to another retirement product, for example the Allan Gray Retirement Annuity Fund or your new employer's retirement fund.

Reasons this option may not be suitable for you

  • Withdrawing from a retirement fund reduces the tax benefits you enjoy in the fund.
  • Pre-retirement withdrawals are taxed significantly more than cash lump sums at retirement.
  • Using your retirement savings before you retire may affect your lifestyle in retirement.

All previous withdrawals (including retirement cash lump sums and severance benefits) are taken into account when calculating how much tax you will pay. 

How much you withdraw How much tax you will pay
R0 - R25 000 0%
R25 001 - R660 000 18% of the taxable amount above R25 000
R660 001 - R990 000 R114 300 + 27% of the taxable amount above R660 000
R990 001 and above R203 400 + 36% of the taxable amount above R990 000


Your withdrawal amount is significantly reduced by tax

Example 1: If you take R150 000, you will pay R22 500 to SARS (18% of R125 000).

Example 2: If you take R800 000, you will pay R152 100 to SARS (R114 300 + R37 800).

A withdrawal instruction cannot be cancelled

Many retirement fund members change their minds about making a withdrawal once they see how much they will be taxed. It is important to realise that you cannot cancel your instruction once you have submitted it.

We apply for a tax directive when we receive a withdrawal instruction. In terms of legislation, once a tax directive has been applied for the instruction cannot be cancelled. The taxable amount stipulated on the directive is final and will be paid to SARS from your account. The balance of your requested withdrawal amount will be paid to you.

Complete the following steps:

1. Complete and sign the Umbrella Retirement Fund Member Exit Instruction.

2. Any remaining balance must be transferred to another retirement fund.

3. Email the above forms to instructions@allangray.co.za.

We will contact you once we have received your forms.

Please note: once we receive your withdrawal instruction and all required documents, we will apply for a tax directive from SARS. The tax directive may not be altered and your withdrawal instruction cannot be cancelled. 

 

The financial services, products or investments referred to on this website are not available to persons resident in jurisdictions where their availability or distribution would contravene local laws or regulations and the information on this website is not intended for use by these persons. This website is for information only and does not in any way constitute a solicitation or offer by Allan Gray Proprietary Limited or any of its associates or subsidiaries (collectively “Allan Gray”) to buy or sell any financial instruments or to provide any investment advice or service.

By selecting one of the countries below I confirm that I have read and understood the above and that:

(a) I am not a South African citizen; or 
(b) I do not reside in the Republic of South Africa; or 
(c) I am not otherwise a person to whom the communication of the information contained in this website is prohibited by the laws of my home jurisdiction; and 
(d) I am not acting for the benefit of any such persons mentioned in (a),(b) and (c) and 
(e) I confirm that any investment with Allan Gray is based on my own initiative and not due to any offer or solicitation by Allan Gray.