retrenchment
You have a number of options regarding your severance benefits, and what you do with this money largely depends on your personal circumstances. If you are likely to need the money in the short term, rather put your cash in
Your severance package is separate from your retrenchment benefit (retirement fund benefits) and includes the one week’s pay for every year worked and all other monies owing by your employer as a consequence of your employment. From a tax perspective,
If you’ve never had a retirement plan prepared and you don’t know whether you are putting away enough for retirement, this will undoubtedly be a source of stress for you. According to the 10X Retirement Reality Report, 67% of economically
Once you and employer have come to agreement on your severance benefit, keep in mind that the Income Tax Act allows more favourable tax treatment of these benefits. The first R500 000 of your severance pay, being a combination of
You are able to transfer your policy RA to a unit trust-linked RA, although this should be done with the considered advice of a financial adviser. Such a transfer will need to take place via Section 14 of the Pension
When retiring from a provident preservation fund, you currently still have the flexibility to withdrawal anything up to 100% in cash with any remaining balancing being used to purchase an annuity to provide income.
If you decide to cash out your benefits, bear in mind that you will be taxed as per the withdrawal lump sum table. Further, keep in mind that by cashing out your money, you will effectively interrupt the compounding process
Most companies have taken a hit as a result of the coronavirus pandemic and national lockdown. Retrenchments are on the rise and unemployment is endemic. While your retrenchment may be upsetting, avoid taking it personally.
A ‘severance benefit’ is essentially the cash payment that your employer pays you as a result of your loss of employment. Our law provides that you are entitled to at least one week’s pay for each year of completed service,
If you’re in a partnership, you’re part of a team. For your team to succeed, it helps if you are both working towards the same set of goals, and employing your joint resources for the benefit of the team, not
