2018 is my last working year. I intend transferring the two-thirds of my pension to either a preservation fund or living annuity. What options do I have regarding the withdrawal? My one-third cash payment could last me for two years. Can I waive withdrawal for two years then opt for quarterly withdrawal from the third year after retirement? Bonisiwe Nokwindla Nerine Brink, principal at PSG Wealth Employee Benefits Route 21, replies: Your conservative approach to withdrawal is well advised. A failure to exercise drawdown control - spending more than you earn - is the reason many retirees run out of money. Preserving the two-thirds while living off the lump sum is unfortunately not possible, as preservation on retirement is not possible under the Pension Funds Act. I recommend you make use of an independent financial adviser. The investment environment is a daunting place when faced alone. Make use of the one-third withdrawal, but be careful not to exceed the allowed R500000 tax-free...
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