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A Fin24 user wants to know if he could make a second withdrawal in terms of his Momentum Preserver contract. He writes:
I have a Preserver with Momentum and did a withdrawal in 2001 when I was retrenched.
I would like to know if I could request the balance of payment, as I am 57 years of age.
Momentum responds:
Based on the limited information provided, Momentum is able to provide a hypothetical answer.
You invested in a Preserver with Momentum and will be able to retire from such a contract after the age of 55.
As you have already accessed your once off withdrawal prior to retirement, you will not be able to request an additional lump sum withdrawal.
Therefore, you will be able to exercise your retirement from the fund and your options are as follows:
In the case of a Pension Preservation contract:
- One third of the investment value may be accessed by you subject to tax, according to Sars calculations.
- Two thirds of the investment value may be transferred to a compulsory living annuity with Momentum or any other financial services provider.
- Three thirds may be transferred to a compulsory living annuity contract with Momentum or any other financial services provider.
In the case of a Provident Preservation contract:
- Three thirds of the investment value may be accessed by the client subject to tax according to Sars calculations.
- A third of the investment value may be accessed subject to tax according to Sars calculations.
- Two thirds of the investment value may be transferred to a compulsory living annuity with Momentum or any other financial services provider.
- Three thirds may be transferred to a compulsory living annuity contract with Momentum or any other financial services provider.
-It should be noted that the above scenarios are dependent upon the contract details of the particular client.
However the above should provide guidance as to the options available to you in consultation with your financial adviser.
- 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.
I have a Preserver with Momentum and did a withdrawal in 2001 when I was retrenched.
I would like to know if I could request the balance of payment, as I am 57 years of age.
Momentum responds:
Based on the limited information provided, Momentum is able to provide a hypothetical answer.
You invested in a Preserver with Momentum and will be able to retire from such a contract after the age of 55.
As you have already accessed your once off withdrawal prior to retirement, you will not be able to request an additional lump sum withdrawal.
Therefore, you will be able to exercise your retirement from the fund and your options are as follows:
In the case of a Pension Preservation contract:
- One third of the investment value may be accessed by you subject to tax, according to Sars calculations.
- Two thirds of the investment value may be transferred to a compulsory living annuity with Momentum or any other financial services provider.
- Three thirds may be transferred to a compulsory living annuity contract with Momentum or any other financial services provider.
In the case of a Provident Preservation contract:
- Three thirds of the investment value may be accessed by the client subject to tax according to Sars calculations.
- A third of the investment value may be accessed subject to tax according to Sars calculations.
- Two thirds of the investment value may be transferred to a compulsory living annuity with Momentum or any other financial services provider.
- Three thirds may be transferred to a compulsory living annuity contract with Momentum or any other financial services provider.
-It should be noted that the above scenarios are dependent upon the contract details of the particular client.
However the above should provide guidance as to the options available to you in consultation with your financial adviser.
- 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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