I am 56 and was retrench. As I received an severance package and plan to do some consulting work, I want to delay my pension for at least 18 months or even longer if possible. The retirement fund decline my request to transfer my pension account to a preservation fund or a retirement annuity. They say as I am older than 55 I have to take a monthly pension income. Therefore the funds can only be transfer to a retirement instrument that gives me a pension income immediately and can not delay it.
They quote me the following:
Employees older than 55, will not be able to take all the money from the XXX Retirement Fund as a cash payment (like a resignation). The Pension Fund act prescribes that employees older than the age of 55, must go on pension (therefore receive a monthly pension) or that the pension credit been transferred into an external retirement instrument Annuity to be paid out as a monthly pension. In cases where the pension credit gets paid into an annuity or the pension gets paid as a monthly pension salary, the one third can be paid out, tax free until a maximum of R315,000.
Are there any rules, regulation or act (pension fund or tax) that prevent me from preserving my pension beyond the age of 55?