Sometimes a retirement benefit can remain in the existing fund as a paid-up benefit after you leave employment, but this depends on the fund rules and the options made available to exiting members.
What does 'paid-up' mean?
In broad terms, your existing retirement money remains invested in the fund even though contributions linked to that employment have stopped. You should confirm the exact fund rules, fees, investment choices and future transfer options.
Compare it with your alternatives
Do not assume that staying or transferring is automatically better. Compare the old fund's costs and investments with a preservation fund and, where available, your new employer's fund. Also compare access rules, retirement options, administration and beneficiary arrangements.
Questions to ask the old fund
- Can my benefit remain paid-up?
- What fees will apply?
- Can I change investment portfolios?
- Can I transfer later?
- How are the Two-Pot components treated?
- What happens at retirement?
Compare preservation funds and new-employer transfers.
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