Retirement, Death, Retrenchment
Upon retirement or retrenchment a member of a pension fund or retirement annuity fund has a decision to make regarding how much to take as a cash lump sum. Up to one-third may be taken as a lump sum with the first R550 000 taxed at 0%. The question arises how much to take as a lump sum due to previous retirements/withdrawals. This is where Gravitas can simulate the actual amount of tax payable by the member. This gives you as the financial planner an advantage to save the client on tax payable and optimise their retirement planning. The tax calculation is impossible to do if all information is not available, which it rarely is.