To use the pension or not

[pension]

Well the pension table are as follow for 2012-2013.

R0 - R22500 0%
R22501 - R600000 18% amount above 22500
R600001 - R900000 R103950 + 27% amount above R600000
R900001 + 184950 + 36% amount above R900000

The Option I would go for is putting the pension Funds In to a Preserver fund.
The Preserver fund allows you to make 1 withdrawal so I would withdraw just what I need to pay my debt off.
The tax table that I gave you will only apply to the fund that you are withdrawing from the preserver fund.
when I pay my debt off I would invest in 2 different investment ( fund that are free from my debt is paid off)
1 I would work out what my tax deduction allowed amount is on a RA and invest that amount in the RA fund.
2 The rest I will invest in an end term tax free investment. (Endowment investment)

Hope that helps

Cool Advise

 

[SuperVarkie]

Cool Advise

I’m glad I could help a bit.