Retrenchment brings a lot of uncertainty

While your options might seem limited, we’re here to help you through this trying time.

At Anchor, we understand that going through a retrenchment can be extremely difficult for both you and your family. It also comes with many questions and concerns about your financial future. We are here to help you navigate through this uncertain time and assist you in taking full advantage of your retrenchment package.

Below, we highlight a checklist which you can use to confirm that you have covered all the aspects required to ensure that your financial affairs are in order.

If you would prefer to discuss this with us directly, then please complete your details by clicking here and an Anchor wealth manager will be in touch with you.

Three important things to consider in the event of a retrenchment:
What to do with the money saved in my pension/provident fund?
What to do about the group risk cover I have with my company?
What to do about my medical aid if it is currently through my company?

Concerned about your benefits and money invested?

What to do with the money saved in my pension/provident fund?

Prior to retrenchment, you may have been contributing to your company’s pension or provident fund by giving a portion of your salary to the provident fund each month and that money is then held and managed until resignation or retrenchment.

If you contribute to your retirement fund using a company provident or pension fund, you will have the following options available upon exit:

  1. Take all the benefits in cash, after paying the required tax – we do not recommend this option if there is a choice. (more info)
  2. Move the benefits to your new employer’s pension or provident fund. (more info)
  3. Move the benefits to a pension or provident preservation fund of your choice. (more info)
  4. Move your benefits to a retirement annuity. (more info)

Follow the prompts on the right hand side to ensure that you are informed about all your available options.

Ensuring you remain covered

What to do about the group risk cover I have with my company?

A company pension or provident fund is very likely to have additional risk benefits in place and may change significantly when you leave your current employer.

Group benefits can be divided into three broad categories – life cover, dread disease and income cover. All of these will cease to cover you when you leave your employer. If you have this cover through your employer or independently and would like it to be reviewed we can also assist.

Follow the prompts on the right hand side to ensure that you are informed about all your available options.

Concerned about medical aid?

What to do about my medical aid if it is currently through my company?

If your medical aid is through your employer, you will need to transfer it to your own name and account going forward. Medical aid is an important form of insurance, where your monthly contribution provides you with financial cover for medical treatment you may need thus making it critical to ensure that you are appropriately covered for your current and possible future needs.

Follow the prompts on the right hand side to ensure that you are informed of all your available options.

    

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COPYRIGHT (C) 2020 ANCHOR | Reg #2009/005413/06 | Vat #4380267833
An Authorised Financial Services Provider FSP #39834

The content is for informational purposes only and should not be construed as investment, financial or other advice or guidance in any form whatsoever. Investors are encouraged to obtain independent professional advice before making any decisions regarding their Pension/Provident Fund or Group Risk Cover or Medical Aid.