Question:
I am considering whether to cash in my pension or transfer it to a retirement annuity (RA).

I don’t think it’s much as I have been in this job for only nine months. I understand I will be taxed if I cash it in, but what if I decide to transfer it to a RA? Will I still be taxed? Is such a transfer even possible?

Answer:
You need to go to your HR department and ask them to put you in touch with the people responsible for retirement funds. Then make an appointment to see them.

You may find that your money is already in an RA. You may be bound by the rules of the company pension plan and this could mean that you will not be able to move the funds unless you resign. If you move the money into another investment vehicle without spending any of it the money will not be taxed.

Usually, if you have a company investment plan it is coupled with life cover, disability and medical aid — a total benefits package. It can be advantageous to stick with this kind of plan, because they get cheaper coverage for the group than you would as an individual.

You did not say why you want to move the funds — examine your motives carefully and don’t make any changes until you are fully aware of the consequences.