“You are extremely lucky if your company offers you a Provident or Pension fund as part of your package, especially in a country where we have one of the lowest saving rates in the world.
Due to our busy lifestyles, we tend to skip through important detail and make rushed decisions. When joining a new company and a Pension or Provident Fund is included in the package, most people do not know what the difference. It is only when they leave the company and wish to disinvest, that the right questions are asked.
There some differences between a Provident and Pension Fund that relate to the benefit offering of each at the “disinvestment stage” and with regard to tax that you are liable for. Understanding this might influence the choices you make, as well as how you supplement your Retirement Savings Strategy.”
Employees that are offered either a Pension or Provident Fund, have a better chance of retiring independently.
As retirement might come sooner than you have expected, you do not wish to find yourself in a situation where you are ill-prepared. It is of paramount importance to preserve your wealth as best you can and book a session with your fund Financial Adviser to assist you with your retirement planning. Ensure that you are equipped with the right information in order to make informed decisions about your financial future.