Get Application To Open An Account - Liberty Pensions

Retirement Annuities (RAs) A key difference is that RAs cannot be accessed before retirement age (minimum 55), whereas pension, provident and preservation funds allow for early withdrawals, subject to tax implications. However, this is generally not advised as it diminishes your retirement savings.

At retirement a member will be able to take 100% of the Vested benefits and up to one third of the Non-Vested benefits as a cash lump sum retirement benefit, subject to tax. The member will however be required to purchase an annuity with at least two thirds of the Non-Vested benefits.

Contact your fund financial adviser if you are unsure what to do when leaving your employer or for further information regarding your preservation options. Alternatively, you can contact Liberty's benefit counsellors on benefitcounselling@liberty.co.za or 011 558 2999.

For some people—especially those who are uncomfortable with managing an investment portfolio—a retirement annuity can be a secure way to make sure they don't outlive their assets. Others may be better off maximizing their 401(k) plan or individual retirement account (IRA) before putting money into an annuity.

Once the final decision is accepted by all affected beneficiaries, Liberty Corporate will finalise payment within 15 working days. Unapproved group life policies are owned by the employer and not the fund. These benefits do not form part of the retirement fund and are therefore not subject to Section 37C.

Annuities offer benefits like a steady income in retirement and tax-deferred growth with no annual contribution limits. However, they can come with high annual fees, early withdrawal penalties and may not provide inheritance for heirs.

Retirement Annuities (RAs) A key difference is that RAs cannot be accessed before retirement age (minimum 55), whereas pension, provident and preservation funds allow for early withdrawals, subject to tax implications. However, this is generally not advised as it diminishes your retirement savings.

What is the difference between a 401(k) and a pension? A 401(k) is an employer-sponsored retirement account that allows an employee to divert a percentage of his or her salary—either pre- or post-tax—to the account. A traditional pension plan offers retirees a fixed monthly benefit for the rest of their lives.