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A Fin24 user wants to know if there is any way to transfer her living annuity to another type of fund. She writes:
A small sum of money from a previous preserver fund was transferred to a living annuity with a small payout once a year (this covers zero expenses).
Is there any way to transfer this living annuity to another type of fund?
Marius Fenwick, chief operating officer Mazars Financial Services, responds:
Living annuity portfolios can be changed at any time. If you are unhappy with the returns received within the living annuity, this can be addressed at any time.
The only time that the total living annuity can be cashed in depends on how the proceeds were handled when the annuity was started.
If a portion was taken in cash at implementation, then the total investment value must drop below R50 000 before the total investment can be paid out.
If no cash was taken at implementation, then the investment value must drop below R75 000 for the full investment value to pay out.
This implies that, should the full value of a retirement fund (pension, provident or retirement annuity) amount to less than R75 000 on the date of retirement, the full proceeds can be taken in cash.
The rule that a compulsory annuity must be purchased with the proceeds of retirement funding falls away when the value is less than R75 000.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
A small sum of money from a previous preserver fund was transferred to a living annuity with a small payout once a year (this covers zero expenses).
Is there any way to transfer this living annuity to another type of fund?
Marius Fenwick, chief operating officer Mazars Financial Services, responds:
Living annuity portfolios can be changed at any time. If you are unhappy with the returns received within the living annuity, this can be addressed at any time.
The only time that the total living annuity can be cashed in depends on how the proceeds were handled when the annuity was started.
If a portion was taken in cash at implementation, then the total investment value must drop below R50 000 before the total investment can be paid out.
If no cash was taken at implementation, then the investment value must drop below R75 000 for the full investment value to pay out.
This implies that, should the full value of a retirement fund (pension, provident or retirement annuity) amount to less than R75 000 on the date of retirement, the full proceeds can be taken in cash.
The rule that a compulsory annuity must be purchased with the proceeds of retirement funding falls away when the value is less than R75 000.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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