Transfer to a preservation fund

If you have left your employer and have a retirement fund payout, you can transfer those savings into a Preservation Fund. This allows you to keep your retirement savings invested instead of withdrawing the money and paying unnecessary tax.

Transferring your retirement fund helps you preserve the value of your savings while keeping your long-term retirement goals on track.

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What is a preservation fund?

Your retirement fund savings were built for retirement. When you leave your employer, you need to decide what to do with that money.

A preservation fund is a retirement account that allows you to move your savings across, keep them invested, and protect them until you retire.

Taking the money in cash can feel tempting, but moving it into a preservation fund lets your savings stay invested and keep working towards your retirement.

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Is a preservation fund right for me?

A preservation fund may be a good option if you have left your employer and want to keep your retirement savings invested instead of withdrawing them.

It may suit you if:

  • You have left a job where you had a retirement fund and want to preserve those savings for retirement
  • You want to avoid paying unnecessary tax by withdrawing your retirement money too early
  • You want your savings to remain invested so they can continue to grow over time
  • You are not yet ready to retire but want to keep your retirement savings working for you
  • You want flexibility, including the option to make a withdrawal before retirement if needed

A preservation fund helps you protect the value of your retirement savings and keep them focused on your long-term financial future.

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Why preserve your retirement fund with Alexforbes?

Your retirement fund transfer is tax-free

Transferring your retirement fund to a preservation fund is generally a tax-free transaction. If you withdraw the money instead, tax may apply to the amount you take out.

By preserving your savings, you avoid unnecessary tax today and keep more of your retirement money invested.

You could benefit from our low fees

Our ONEfee model keeps costs low and transparent, so you keep more of your money invested for retirement.

You can track your investment in real-time

Our digital tools make it easy to monitor your investment and see how your savings are progressing over time. You can view your investment performance and stay informed about how your retirement savings are growing.

Doing a retirement fund transfer is super simple

Our guided online process makes transferring your retirement fund straightforward. We help manage the administration and keep you informed throughout the process. This allows you to focus on preserving and growing your retirement savings.

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See how your retirement savings could grow

Use our retirement investment calculator to explore how contributions, transfers and fees could affect your retirement outcome. Adjust your inputs to see how your savings could grow over time and what difference lower fees may make.

You can model different scenarios, including transferring an existing retirement annuity, preservation fund, or provident fund.

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Start your retirement fund transfer online

Transfer your retirement fund to a preservation fund through a simple, guided online process. Start your transfer, complete the required details and keep track of your progress from your phone or computer.

Why invest online?

  • Begin your retirement fund transfer with a straightforward digital process
  • Preserve your retirement savings instead of withdrawing and paying tax
  • Keep your savings invested for long-term retirement growth
  • Track your investment and monitor your progress online
  • Complete the process quickly with guided steps

Start my retirement fund transfer

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Speak to a financial adviser

If you would like help deciding what to do with your retirement fund after leaving your employer, an adviser can guide you through your options.

Our qualified advisers take time to understand your financial situation and help you decide whether preserving, transferring or investing your retirement savings is the right approach for your long-term goals.

When advice may help

  • You want help deciding what to do with your retirement fund after leaving a job
  • You want guidance on preserving your retirement savings instead of withdrawing them.
  • You have multiple retirement investments or complex financial needs
  • You would like help structuring your long-term retirement savings

Connect with an adviser

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The funds behind your preservation fund

Our investment specialists combine funds into diversified portfolios designed to grow your retirement savings while managing risk. Each fund is rigorously researched and continuously monitored.

This gives you:

  • Institutional-quality fund selection
  • Diversification across asset classes and managers
  • Ongoing oversight from experienced investment professionals
  • Access to leading investment managers

Your retirement savings are therefore supported by a carefully constructed mix of funds designed for long-term outcomes.

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Need to access your retirement savings?

South Africa’s two-pot retirement system allows you to access a portion of your retirement savings before retirement, while keeping the rest invested for your future.

You may be able to withdraw from the savings component of your retirement fund if you meet the requirements. Before making a withdrawal, it is important to understand how this could affect your long-term retirement savings and the tax that may apply.

Make a two-pot claim

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Looking for something else?

Retirement annuity

Build retirement savings with a tax-efficient investment designed for long-term growth. Contributions may qualify for tax deductions while your investment grows without tax on interest, dividends or capital gains.

Learn more

Tax-free investment

Save for long-term goals with a tax-free investment account. Your contributions grow without tax on interest, dividends or capital gains, helping your savings grow faster over time.

Learn more

Global Investments

Invest beyond South Africa with access to international markets and currencies. Diversify your portfolio and pursue long-term growth opportunities worldwide.

Learn more

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Frequently asked questions

What are all these components in my Preservation fund?

Your Preservation Fund will reflect 4 components, being a Retirement, Savings, Vested and Non-vested component.

The retirement and savings component will reflect the transferred value of contributions made after 1 September 2024 and growth thereon. The remaining components will only reflect the transferred value of contributions made before 1 September 2024, and growth thereon.

For more information, you can click here.

Can I make contributions to a preservation fund?
By law, you can't make any additional monthly or lump sum contributions once you have invested in a preservation fund. You can only transfer money from a pension, provident or another preservation fund to a preservation fund.
When can I retire from my preservation fund?

The earliest retirement age for a preservation fund is 55. At retirement you have the following options from the various components in your preservation fund as from 1 September 2024:

  • Vested component

You can take part or all your retirement savings in cash, after tax, when you retire OR use the full amount or portion remaining after taking cash, to purchase an annuity to provide you with an income in retirement.

  • Non-vested component

You can take up to 1/3rd of your money in cash subject to tax. You must use at least 2/3rds of your money to purchase an annuity to provide you with an income in retirement.

  • Savings component

You can take the full amount in cash (subject to tax) or use this or a portion towards purchasing an annuity to provide you with an income in retirement.

  • Retirement component

You must use your entire amount in your retirement pot to purchase an annuity that will provide you with an income in retirement.

If the full amount in your Retirement component plus 2/3rds of the Non-vested component is below R 165 000, you can take the entire amount in cash, subject to tax.

Can I transfer my other retirement preservation fund to an Alexforbes Invest Preservation Fund?
Yes, and we can assist you with the process. The best part is that this transfer is tax-free. Due to the number of parties involved in the process, these kinds of transfers can take some time. But not to worry, we will help you every step of the way.
Is the Alexforbes Invest Preservation Fund protected from my creditors?
Yes, once your money is invested in the Alexforbes Invest preservation fund it is protected from all your creditors, thus ensuring you have something to help you retire with one day, even if you were sequestrated.
Can I withdraw from a preservation fund? What are the withdrawal rules?

The following applies to withdrawals made before you retire (as from 1 September 2024) from a preservation fund:

  • Vested and Non-vested components

You may only make one taxable withdrawal (partial or full) before you retire, proportionately from the vested and non-vested components. However, the participating employer may impose conditions on withdrawing from the fund before retirement.

  • Savings component

Withdrawals from the Saving component can be done once every tax year, subject to tax at your marginal tax rate, subject to a minimum amount of R2 000.

  • Retirement component

No withdrawals can be made.

What is the minimum amount I can transfer?
We will accept transfers for amounts of R 25 000 and more.
What happens to my Alexforbes Invest Preservation Fund if I die?
A board of trustees is responsible for running the Preservation fund and protecting the interests of all members. If you die while still invested in the Alexforbes Invest Preservation fund the trustees must trace those that are financially dependent on you and allocate the funds appropriately.
What is a vested and a non-vested benefit?

Vested benefits are accrued rights from membership in a provident fund or provident preservation fund on 1 March 2021. If you have been a member of these funds at the time, any amounts contributed or transferred to these funds, before 1 March 2021, are seen as your vested benefits.

If you were 55 years or older on 1 March 2021, your vested benefits will also include any further contributions you made while you were a member of that provident fund, including fund returns. A vested benefit right gives you the right to be able to withdraw the full benefit value as a lump sum upon retirement.

Non-vested benefits relate to any other benefits in a retirement fund, which gives you the right to be able to only withdraw up to a maximum of 1/3rd at retirement. The remaining portion of the non-vested benefit must be used to purchase an income for life (Living annuity or guaranteed annuity) at retirement.

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