SARS announces changes on pensions

Published Aug 5, 2006

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South African Revenue Services (SARS) has announced you are now allowed to take as a lump sum payment the entire capital of a retirement annuity or pension fund if the capital amount does not exceed R25 200.

In other words, you are not obliged to purchase an annuity (pension).

For any capital amount over this sum you are required to use two-thirds of the sum to purchase an annuity (pension).

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