Should I kill my RA?

Hi I'm new here,

Just a question around RA, I have one with liberty that unfortunately I stopped contributing towards when I quit my job last year. At some point I spoke to a consultant from liberty and they told me that because of some amendments to the pension fund act, I'm unable to cash it out until I hit retirement age. In my case that's another 20yrs to go.

Is it true that there were amendments made during Zumas' term that now prohibits members from accessing/ cashing out their RA before retirement age?
 
Mtapido said:
Hi I'm new here,

Just a question around RA, I have one with liberty that unfortunately I stopped contributing towards when I quit my job last year. At some point I spoke to a consultant from liberty and they told me that because of some amendments to the pension fund act, I'm unable to cash it out until I hit retirement age. In my case that's another 20yrs to go.

Is it true that there were amendments made during Zumas' term that now prohibits members from accessing/ cashing out their RA before retirement age?
Click to expand...

No, it has always been that way, way before Zuma was president

If I remember correctly, if the fund value is below R7500 or something like that you can cash it out.

You can also cash it out if your formally emigrate. Otherwise you can access it from age 55 by "retiring" from that fund.
 
Mtapido said:
Hi I'm new here,

Just a question around RA, I have one with liberty that unfortunately I stopped contributing towards when I quit my job last year. At some point I spoke to a consultant from liberty and they told me that because of some amendments to the pension fund act, I'm unable to cash it out until I hit retirement age. In my case that's another 20yrs to go.

Is it true that there were amendments made during Zumas' term that now prohibits members from accessing/ cashing out their RA before retirement age?
Click to expand...
It is true. Can only cash out at age 55. There are a select few exceptions, along the lines of leaving the country permanently I think. You will pay full tax on it then.
 
Mtapido said:
Is it true that there were amendments made during Zumas' term that now prohibits members from accessing/ cashing out their RA before retirement age?
Click to expand...

Retirement Annuity ... it's kinda in the name. The only way to get the cash out is:
  • Reach retirement age and retire
  • Emigrate and give up tax residency ("financially emigrate")
  • Prove that if you do not get the cash you will die of a medical condition
 
You can stop the RA if the value is max R7000 or less

On the other hand, start reading up, do a section 14 to a firm that knows how to work with your money (if the value is larger than R7k)
 
Last edited:
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