HOW TO...
Quit your job with financial savvy
According to some estimates, about 60% of people take their retirement cash and spend it
You have resigned from your job and have been asked if you would like to take your retirement savings as a lump sum. Tempting, isn't it? According to some estimates, about 60% of people in this situation take the cash and spend it. Riaan Singh, senior manager: digital strategy at Momentum Corporate and Public Sector, says this is not the best option, and it's not the only mistake people make when changing jobs. "The different line items on payslips can be difficult to understand, such as retirement fund contributions and the different deductions for insurance and medical aid. Most employees compare take-home pay after deductions, instead of their total cost-to-company package." Singh has the following advice: • Before employees resign, they should find out if their employee-benefits package allows them to convert their group insurance benefits to individual insurance benefits at the same level of cover and at similar rates; • To avoid sabotaging your financial wellness, check if the...
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