Where your fund benefits increase in value – and remain accessible
Proper retirement planning should form a very important part of each person’s financial planning strategy. Times have changed. People no longer remain with just one company for their entire working lives. How rewarding your life after retirement is depends on how well you plan and make provision for it now. If you are leaving your employer’s fund due to resignation, retrenchment, or the winding up of your retirement fund it is essential that you preserve your current retirement savings.
So whether you resign to seek greener pastures, take a package, or your employer’s pension or provident fund is dissolved, you face the problem of having to decide what to do with the benefit amount from your pension or provident fund. How can you make sure you get the most out of your hard-earned money?
You’ll need a plan that will help you grow your capital and provide a level of income that enables you to maintain your current standard of living. In order to cater for this very specific need, First Mutual Life has tailored the Preservation Fund which aims to protect and preserve retirement and other benefits for both members exiting approved retirement funds and individuals alike. The Preservation Fund provides you a flexible opportunity of investing the fund benefit for your old age; in a way in which it can increase in value but at the same time give you access to the funds in an emergency. It’s important to look after your current retirement capital, without dipping into your savings for expenses before you retire
The First Mutual Preservation Fund is a retirement saving plan which caters for 3 major market segments:-
Preservation Fund Benefits
What is the minimum contribution?
The current minimum investment required to become a member is USD50 or equivalent in Pound sterling, Euro, Pula or Rand. One has the option to select the level of future regular contributions depending on your circumstances. The minimum should be not less than USD50 per month. Limits may be waived in special cases.
Are the Preservation Fund contributions allowable for tax?
The Preservation Fund is an approved fund and in terms of existing legislation pension contributions up to USD5400 per annum are allowed as a deduction from income before calculation of PAYE income tax. The tax deductible amount is subject to change at the discretion of the Minister of Finance.
What happens if One can no longer afford the contributions?