Only after you turn 55 years old can you retire from the OUTvest Retirement Annuity subject to the applicable taxation. At retirement, for any non-vested benefits, up to a maximum of one third (1/3) of the money can be taken by the investor in cash (subject to taxation) to invest as they please while the remaining portion must be used to buy an annuity to provide the investor with an income. However if your fund value in the retirement annuity is lower than the R 247 500 after you turn 55 years old, you can access the entire amount in cash subject to taxation.
For any provident or provident preservation fund vested benefits at retirement, you can however take the full benefit as a lump sum, or take a portion of the benefit as a lump sum and purchase an annuity with the rest.
You can also access your funds in the following special circumstances:
- Early retirement due to ill health or permanently disabled
- Formal emigration (financial emigration)
- Fund balance less than R 15 000
In these cases there will be taxation applicable on the cash amount taken.