Yesterday on Talk Money, I continued the discussion on the impact of recent legislative changes on Retirement Annuities.
May a member access more than one third on retirement?
Prior to 1 October 2007 members could only access the full value if the fund value was less than R25 200. Recent legislative changes give members the option to access the full value of the Retirement Annuity if the value is less than R75 000,00 (Tax deductions still apply).
What happens on the death of a member prior to retirement?
Beneficiaries of a Retirement Annuity previously had to invest into an annuity or could be take 1/3rd cash and the balance into a linked life annuity. Now beneficiaries can take the full value of the members RA or invest into a linked life annuity or a voluntary annuity.
