Retirement Benefits

At retirement, your Fund Credit minus any allowable deductions becomes payable. The portion of your Retirement Benefit which is paid as a lump sum is taxed according to the following fixed scale:

This applies to the aggregate of all retirement lump sums received over your lifetime.  This means that you cannot get R550 000 from a Retirement Annuity and R550 000 from the MGF.  Your Retirement Benefits will be added together and the first R550 000 will then be tax free.  The balance will be taxed according to the above scale.

Any withdrawal or retrenchment benefit previously received tax-free (including any tax-free amount received from your Employer as a severance package), as well as tax-free portions for amounts paid out after 1 March 2009 in respect of divorces or maintenance orders, will reduce the tax-free portion available at retirement.

The following applies for each of category of your retirement savings:

Note: If you were 55 or older on 1 March 2021 (i.e. you were born before 1 March 1966) and have been a member of the MGF since then, your options are slightly different, unless you opted in to the Two-Pot System. Only the vested pot applies to you, and you make take a portion in cash, subject to tax in line with the tax table for withdrawal.

You have the following options at retirement:

• Leave your money in the Fund until a later date (preservation membership)
• Use the entire amount to take a Life Annuity or Living Annuity from any registered insurer; OR purchase a commission-free Life Annuity from the Funds’ preferred provider
• Take a portion in cash and use the balance to purchase a Life Annuity or Living Annuity

You may elect to take any portion, even 100%, of the Fund Credit as a lump sum payment.

The Fund has adopted an Annuity Strategy in terms of which a life annuity (guaranteed pension) from Sanlam, subject to certain conditions, can be arranged for you. Speak to the Fund's benefit counsellors for more information.

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Retirement Benefits Counselling 

You have free access to a counsellor who can explain the options you have when you resign or retire from your employer. The counsellor does not give advice, but rather information about retirement planning matters in simple and straightforward language.

Sanlam Benefit Counsellors

Toll-free number: 0800 111 956

WhatsApp or phone: 0861 223 646

Email: advicereferral@sanlam.co.za 

INFund Solutions

Phone: 012 880 5983

Email: mgf@infund.co.za