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.