My pension payout

[...aTrueASL]

When I resigned from my previous employer I was advised that it would take between 5 and 8 weeks for my pension to be paid out to me. So, I was ready for quite a long vacation period.

But, fortunately my pension was paid out to me within 3 weeks and now I can start with my business.

I don't know who are the real heroes here; the bank, SARS or my previous employer. But, I'm grateful.

Now back to work for me...

 

[SinghDude]

Back to work and all the luck in your new ventures.

 

[McGuywer]

I do not know that much about pension pay outs and the lot but I would think, SARS is the hero.


Oh no. I have said it. Well, they have improved hugely!

 

[IceQB]

Think 3 weeks is normal for company pension payouts.
6 weeks for provident funds sometimes longer, depending on who administers it.

Oh & good luck on your new venture!

 

[HavocXphere]

I don't know who are the real heroes here; the bank, SARS or my previous employer. But, I'm grateful.

Presumably whoever does the admin on the pension. The employer probably outsourced it to some co and those are probably the heroes.

So whats this new business you're starting?

 

[blunomore]

Will you manage to at least save some of your pension pay-out for a rainy day, and in case the business does not take off the way you hoped it would?

 

[Obelix]

Don't you get taxed into oblivion if you use you're pension payout without actually being a pensioner ?

 

[blunomore]

Don't you get taxed into oblivion if you use you're pension payout without actually being a pensioner ?

Oh yes, that is the other thing that I was thinking of: normally one cannot access these monies, as it gets paid into a 'pension preservation fund' of sorts, or you can make a one-time withdrawal.

 

[Cicero]

Don't you get taxed into oblivion if you use you're pension payout without actually being a pensioner ?

Yeah, but its not some special pension tax. It just as though your taxable earnings go up by that pension amount, so you get taxed accordingly AFAIK.

Good luck though mate! Gotta take some risks in your life...go for it.

 

[AvatarS]

You can get it paid out. It is an option. There might be a penalty from the fund unless you're leaving the company for which the fund is administered.
The once-off part is that a certain amount is free from tax (I forget the amount). After that amount is reached, you're taxed on any further withdrawals.
You can choose to have it transferred to another pension fund if you so wish.
I've taken the payouts from the previous 2 companies I was with, on the basis that I could use the money at the time and had sufficient time to start a new pension fund (yes, I did discuss this thoroughly with my broker and started a new fund the day the one at my previous employer paid out).

 

[SEF]

When I resigned from my previous employer I was advised that it would take between 5 and 8 weeks for my pension to be paid out to me. So, I was ready for quite a long vacation period.

But, fortunately my pension was paid out to me within 3 weeks and now I can start with my business.

I don't know who are the real heroes here; the bank, SARS or my previous employer. But, I'm grateful.

Now back to work for me...

3 weeks ? That's awesome. I was told mine would take up to 6 weeks. So i'm waiting...

 

[...aTrueASL]

So whats this new business you're starting?

It's in the clothing field. It's a huge difference from where I come from (cellular industry).

Thanks to all for your well wishes.

 

[...aTrueASL]

Will you manage to at least save some of your pension pay-out for a rainy day, and in case the business does not take off the way you hoped it would?

No, none of the money can be kept aside for later. A good thing has 'come my way' and I needed to take this risk. I was in the corporate environment for 10 years and I couldn't take it any longer. This was definitely not a decision that my wife and myself made over night.

 

[...aTrueASL]

Oh yes, that is the other thing that I was thinking of: normally one cannot access these monies, as it gets paid into a 'pension preservation fund' of sorts, or you can make a one-time withdrawal.

The tax wasn't as bad as I expected. When I resigned there were 2 options to either take my pension in one shot (not one that they suggest obviously) or to transfer it to some kind of fund.