
PRESERVATION OF YOUR RETIREMENT SAVINGS
While saving for retirement on a regular basis and throughout your career is very important, preserving your funds when changing employers should also be right at the top of your list of retirement savings do’s.
The simple principle: You work so that you can provide for your family and your lifestyle, and you save so that you will have an alternative source of income to continue providing for them when you are no longer working.
One of the biggest problems in South Africa is people cashing out their accumulated retirement savings when resigning from a job.
A 2015 survey found that two-thirds of people leaving their jobs cash out their retirement savings, and many of them use the money to pay off short-term debt. The long-term impact of this can be catastrophic.
When changing jobs, you can preserve your savings and become a paid-up member of the fund and continue to enjoy the superior investment returns of the Fund. Click here to find out more about the paid-up option.
Why it is in your interest to preserve your savings
Let’s assume a 35 year old person who earns R15 000 joins the Fund on 1 May 2021. The figure below shows the contributions less the risk options chosen. In total the member saves R3 269.16pm. Please note that this is only an example, the actual rates for the insured benefit will change from time to time and the rates used in this example cannot be relied on.

Let’s assume further that the member works for 30 years, receives no annual increase and receives 7.5% in investment returns. The table below shows the growth
