Provident funds to be ‘harmonised’ from March 2021
The result will be provident and provident preservation funds essentially being ‘equal’ to pension and pension preservation funds
15 December 2020 - 12:18
As a member of a provident fund you are now allowed to take 100% of your retirement benefit as a lump sum on retirement (subject to paying any applicable taxation on the non-tax-exempt portion of that amount).
As a result, provident funds are “the odd one out”, because as a member of either a pension fund or retirement annuity fund you are allowed to take only a maximum of 33.3% of your retirement benefit as a lump sum, with the remainder required to be paid as a monthly annuity...
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