Retirement Benefit

Normal retirement age is 65 years and you may retire early from age 55 with the consent of your employer.

Contributions that are allocated towards retirement savings are invested by the Fund over the term of your membership.


How Retirement Savings Work

You will receive a benefit statement annually that will show how the money in the Fund is growing and what your savings in the Fund (Fund Credit) amounts to.

Member Contribution

Every month you pay 10% of your salary or wages as a contribution to the Fund. Your full contribution is invested for retirement.

Employer Contribution

Every month your employer pays 10% of your wages or salary as a contribution to the Fund, on your behalf.

A portion of the employer’s contribution goes towards the various costs including risk benefits and the remainder is invested for you by the Fund.


From 1 March 2021 provident funds work like pension funds, i.e. at retirement only one- third can be taken as a cash lump sum and two-thirds must be used to buy a pension for life. To protect members’ vested rights all members will from 1 March 2021 have two “pots” of money in a Fund. A vested “pot” and a non-vested “pot”.

What is the difference between a vested “pot” and a non-vested “pot”?

The vested “pot” of money is the member’s current fund savings as at 1 March 2021 plus growth on the money until the member retires. At retirement this pot can be taken as a cash lump sum.

The non-vested “pot” of money is all the new contributions from 1 March 2021 up until the member retires plus growth. At retirement the member can only take one-third of this money as a cash lump sum and two-thirds must be used to buy a pension (compulsory/guaranteed/life annuity).

If the non-vested “pot” is less than R 247,500 (the de minimis) this may be taken as a cash lump sum.


The Fund offers Retirement Benefit Counselling to help you understand your options at retirement.