A Fin24 reader looks to an expert for assistance on how to withdraw money from his retirement fund after having been previously denied.
Please advise or assist me in my application to withdraw either full/partial or one-third of monies from my annuity retirement fund. It was declined due to the value exceeding the approval for claim payouts.
My withdrawal application was based on my loss of income due to retrenchment. I needed to access my money to pay for my monthly financial obligations and commitments such as rent, school fees, and household expenses.
Can you please let me know the best way ahead and advise whether there are other alternatives.
Belinda Sullivan, head of corporate consulting strategy at Alexander Forbes responds:
Based on the question, we are assuming you want to withdraw money from a retirement annuity. To access any benefit from a retirement annuity fund, the total benefit in your retirement annuity fund must be less than the prescribed amount. This amount is currently R15 000. This means that if your total benefit is more than R15 000, you will not be able to access any money from your retirement annuity.
You will only be able to access your benefit in the following instances:
- Your reach age 55 years;
- You become disabled; and
- You are emigrating.
A financial adviser will be able to assist and provide you with advice as to what other alternatives you have based on your personal circumstances.
*Disclaimer: Please note that the above responses do not constitute financial advice. It is recommended that you to meet with a financial advisor who can help you to understand your benefits and options available to you so that you are able to make the best decisions based on your personal circumstances.
Questions may be edited for brevity and clarity.
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