Grow your preservation fund

A preservation fund is a tax-efficient way to ensure that your hard-earned money goes towards your retirement.

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Overview

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Why Alexforbes Invest

Onefee

Overview

When you invest in an Alexforbes Invest Preservation Fund, you're giving yourself a way to preserve the value of a lump-sum amount. And thanks to our revolutionarily low fees, your lump-sum amount is more likely to grow at the best possible rate.
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Transfer your pension or provident fund to an Alexforbes Invest Preservation Fund

If you've been retrenched, dismissed, or you've resigned from your job, you may be wondering what to do with the pension or provident fund you had with your previous employer.

It might be tempting to cash out the funds so that you have some extra cash in your day-to-day life. But transferring the funds to an Alexforbes Invest Preservation Fund is a great way to ensure the money goes towards your long-term retirement goals.

Thanks to our low-fee advantage, you'll preserve your savings more effectively so that you get more out at retirement, and you'll also keep the tax benefits attached to your provident or pension fund. In short, your future self will thank you!

Transfer my pension/provident fund

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Switch your current preservation fund to Alexforbes Invest

If you already have a retirement preservation fund, consider switching it to Alexforbes Invest. Thanks to our pioneering fee structure, you might find that you spend significantly less on preservation fund fees, which helps you to build your wealth in the long term.

Switch my preservation fund

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Why should you preserve your investments with Alexforbes Invest?

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Our Onefee model

High preservation fund fees can limit the success of your investment. With our Onefee, you pay less, which means you could get more out at retirement. Find out more here.

Outcomes-based investing

Stick to your retirement goals by tracking your investment's outcomes in real-time.

Switching is simple

Our digital, paperless investment platform makes transferring your funds as simple and straightforward as possible. We even simplify the FICA process

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How our Onefee model boosts your preservation fund

Joseph, aged 45, had R5 000 000 in his pension fund. When he resigned, he decided to transfer that money into an Alexforbes Invest Preservation Pension fund for the next 10 years.

Thanks to our Onefee model, Joseph saved 83% in preservation fund fees. This means he could get up to R2 635 000 more out at retirement.

Learn more about Onefee

Switch my preservation fund

Profiles used are only for illustrative purposes. The example provided compares our Onefee to investments applying a 3% per annum fee model. These include fees for advice, administration and fund management. The results are modelled based on a historical growth rate using the asset allocation of the CoreSolutions Moderate fund. Research on fees was conducted by Alexforbes Invest internally. Past performance is not indicative of future performance. All investments are exposed to risk, not guaranteed and dependent on the performance of the underlying investments and excludes the impact of Securities Transfer Tax. Fees may change due to inflation.

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ONEfee

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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