There is no single payout time that applies to every South African retirement fund. The process can depend on the employer, fund administrator, completeness of the withdrawal instruction, tax-directive process and whether money is being paid or transferred.
What can delay the process?
- Your employer has not yet submitted the termination information.
- The fund is waiting for complete withdrawal or transfer forms.
- Banking or identity details require verification.
- A SARS tax directive is required.
- A transfer requires information from the receiving fund.
- The fund has queries about the instruction or member record.
What should you ask for?
Ask the employer/fund administrator whether the exit has been received, whether all documents are complete, whether a tax directive has been requested and whether anything is outstanding from you or the receiving fund.
Don't let payout speed drive the investment decision
If you are deciding between cash and preservation, first understand the consequences of the election itself. A rushed withdrawal can have tax and long-term retirement consequences.
See what happens when you resign and transferring to a new employer fund.
Primary sources
For material tax and Two-Pot decisions, check the current rules directly with SARS and your retirement fund. Useful official sources include SARS retirement lump-sum tax tables and SARS Two-Pot guidance.
Before you submit a withdrawal or transfer instruction
Get a free review of the options you are considering. If personalised assistance is appropriate, your enquiry may be referred to an appropriately authorised financial adviser/FSP.
Request a free retirement-fund review