Retirement Benefit

I am still so young! Do I need to think about retirement?

Yes, definitely. The best time to start thinking about saving for your retirement is in your twenties. It takes approximately 35 to 40 years to save for retirement. The journey towards retirement all starts with a carefully crafted plan.

The tools to help you towards retirement

To be able to maintain your standard of living and enjoy life after your retirement date, you have to start planning as early as possible.

Use the Projection Calculator to see if you are on track.
The calculations are based on assumptions about the future.
The tool also suggests what steps you need to take in order to meet your retirement objectives.


What if I realise that I need to save more?

Here are a few ways of adding more to your future savings: 

 

  

I’m near my retirement date, what should I do?

Gather as much information as possible so that you can make an informed decision.

As your retirement savings will have to last you for the rest of your life, it is important that you don’t take any decision at retirement lightly.  It is recommended that you speak to a registered financial advisor to assist you with this important process.


The decisions you take now will affect the rest of your life. We will discuss several aspects that you need to be aware of at this vital stage.

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My options at retirement

 

At retirement, a member has the following options:

 

Savings Pot

 

When you retire you can take any remaining amount in your savings pot as a lump sum cash payment 

OR 

you may use it toward a monthly pension

OR

You may transfer to an approved fund (Life or Living Annuity only); to purchase a compulsory non-commutable pension or transferred to a Retirement Annuity or Preservation Pension Fund. 

Should you elect to transfer to a Retirement Annuity or Preservation Pension Fund, your full fund value must be transferred, and you may not take part in cash. Once payment has been made to the insurer, the Fund will have no further liability to you or your dependants.

 

Retirement Pot

The amount in your retirement pot must be used to receive a monthly pension either with TFG Retirement Fund;

OR

You may transfer to an approved fund (Life or Living Annuity only); to purchase a compulsory non-commutable pension or transferred to a Retirement Annuity or Preservation Pension Fund. 

Should you elect to transfer to a Retirement Annuity or Preservation Pension Fund, your full fund value must be transferred, and you may not take part in cash. Once payment has been made to the insurer, the Fund will have no further liability to you or your dependants.

 

Vested Pot

Non-Vested Benefit

You may take up to 1/3 as a lump sum and the balance as a monthly pension from TFG Retirement Fund. 

OR

You may take up to 1/3 as a lump sum and the balance you may transfer to an approved fund (Life or Living Annuity only); to purchase a compulsory non-commutable pension or transferred to a Retirement Annuity or Preservation Pension Fund.

Should you elect to transfer to a Retirement Annuity or Preservation Pension Fund, your full fund value must be transferred, and you may not take part in cash. Once payment has been made to the insurer, the Fund will have no further liability to you or your dependants.

Note! Vested Benefit

If you transferred a benefit, which accumulated on 28/02/2021, from a provident Fund to TFG Retirement Fund, which reflects as a Vested Benefit on AF Connect, this amount may be taken as the options above OR it may be taken as a full cash lump sum subject to tax.

 

May I take my full value at retirement as a cash lump sum?

 

If your retirement pot plus two thirds of your vested benefit in your vested pot is less than R165 000, you may take the full amount as a cash lump sum subject to tax. The amount of R165 000 is a legislated amount and may change from time to time.

 

What if I don’t want to access my retirement fund at retirement?

You may elect to become a Deferred Retiree, meaning you leave your full retirement fund value in the Fund and defer your retirement decision until a later date.

 


The smaller your cash lump sum, the greater your ongoing monthly pension will be.

 

Information for when you near retirement

  

If you are planning to retire soon or even in the near future, you need all the pre-retirement knowledge possible to be able to make the right decisions about your options at retirement.

 

  • Calculating your monthly pension:  Your pension will be based on your Fund Value, your age and marital status at the date of your retirement.  Remember, the earlier you retire, the longer your money has to last.  You and the company are then also contributing for a shorter period.
  • Life Stage Portfolios:  If you are within 24 months from your actual retirement date and wish to avoid market volatility, you may consider moving your Fund Value to the Life Stage Portfolio.  More information about the Life Stage Investment Model is available here.  It is advisable that you consult a financial advisor before making a decision.
  • Withdrawing your full Fund Value:  As per the Pension Funds Act, you may not withdraw more than one third of your Fund Value in cash on retirement. See My Options At Retirement. 
  • If you want to defer your retirement date:  At retirement from the Company, you have the option to become a Deferred Retiree, subject to certain conditions.  This means you will retire later and take a monthly pension at a later date.
  • Tax:  All cash lump sum benefits payable on retirement are taxable when they exceed certain levels (currently R550 000).  Any cash lump sum (this includes Provident, Pension and Retirement Annuities) taken before retirement will reduce the tax-free amount at retirement.  A part or 100% of your entire vested benefit and up to one third of your non-vested benefit may be taken in cash.
  • Year End Gift (Salary Plus employees):  At retirement, you qualify for a pro-rated Year End Gift from the Company.  The Year End Gift will be based on the months worked up to your retirement.
  • Staff Discount:  Provided that you have 10 years’ service with the Company, you may keep your staff discount that you were entitled to before retirement. After approval by the Staff Accounts Department, your credit limit will reduce by 50% when you retire.  Should you wish to have your credit limit increased, you may email staffaccounts@tfg.co.za and provide them with proof of your income.
  • Medical Aid:  You may continue as a member of TFG Medical Aid Scheme post-retirement.
    • In terms of the Medical Aid Policy, employees going on retirement will continue to receive company subsidised membership of TFG Medical Aid Scheme where these members were employed with the Company on 1 January 1999.  If employees, who were employed with the Company on 1 January 1999, join the scheme after 1 September 2016, these employees must have at least 10 years continuous membership of TFG Medical Aid Scheme at the time of retirement to qualify for the Company subsidy. 
  • Pensioner's Card:  When you become a TFG Retirement Fund pensioner, you will receive a pensioner's card.  This benefit is not applicable to Deferred Retirees or members who transfer to another Fund or Insurer.
  • Your first monthly payment:  Your first monthly pension from the Fund will be paid at the end of the month following your retirement.  
  • Your lump sum payment: Payment of the benefit will be approximately 4 to 6 weeks after the last of the following takes place:
    • Copy of Identity Document
    • Bank Statement or proof of bank account (not older than 3 months)
    • Marriage certificate and spouse’s copy of Identity Document (if applicable)
    • The Fund’s month end has been completed.
    • HR Termination received by the Fund.
    • Completed Retirement Option Form (signed by the member) received by the Fund, which must include:
  • Annual Increases:  TFG Pensioners receive annual increases depending on the performance of the Fund.
  • Guarantee:  As a TFG Pensioners you will receive your pension for life.  If you pass away within five years from date of retirement, your spouse (to whom you were married at retirement date) will continue to receive your full monthly pension until expiry of the five years where after the pension will reduce to 75%.  The spouse's pension is also payable for life.  The rules further provide for a capital guarantee, i.e. any positive difference between your Fund Value at date of retirement and amounts paid out to you or your spouse, which ever happens last. See What Happens to your pension if you pass away after retirement? 
  • Funeral and Death Benefit:  The funeral and death benefits that you qualify for as an active member will stop at retirement or resignation, as per the insurance policy and rules.  A post-retirement death benefit of R5 000 is payable upon your death as a pensioner.  No funeral benefit will be payable upon the death of your spouse or children.
  • Questions:  Communicate your question by logging a ticket on synergy.tfg.co.za

Procedure To Follow

 

 

1.      Complete the Retirement Quote Request Form.

2.      Return the completed form to Fuse by logging a ticket on synergy.tfg.co.za.

3.      Retirement Services will send you an email with your estimated retirement projection.

4.      You may contact Fuse on 021 937 4742 with any questions or reply to the email.

5.      The administrator will contact you to discuss the content of the projection and address any queries you may have.

6.      The retirement claim documentation will be sent to you for completion from your Synergy ticket.

7.      Once you have made a decision about your exact retirement date and options, send the following to fuse via your Synergy ticket or by reply email:

·       The signed Retirement Option Form

·       Copy of your ID

·       Copy of your spouse’s ID (if applicable)

·       Copy of your Marriage Certificate (if applicable)

·       Income Tax Reference number

·       Proof of your bank account, bank statement or letter from the bank confirming your details

8.      For continuous medical aid membership:

·       The completed TFG Medical Aid Active to Retiree Status Form must be sent to fuse via your Synergy ticket.

·       Voluntary income verification - if you believe your income at retirement will significantly differ from what your current income is, you may complete the Income Verification Form for Discovery Health to assess and possibly adjust your current income band.  Please return to the Medical Aid admin team at:  tfgmedicalaid@tfg.co.za 

·       Both these forms are available on the TFG Medical Aid website at www.tfgmedicalaidscheme.co.za/schemes/tfg/home

9.      For continuous Admedgap cover:

·       The completed Admedgap continuation form must be sent to fuse via your Synergy ticket.

10.  Your manager must do the following:

·       Process a termination on People Connect before the salary cut-off of the month that you retire.

11.  Important links

·       Lifestage Investment Model

·       Retirement Gift Policy: Search “Retirement Gift under the Benefits tile on the HR Hub”

·       All Leave Policy under the Benefits tile on HR Hub

 

Financial Advice Model

 

The Board of Trustees of TFG Retirement Fund have appointed Alexander Forbes Financial Planning Consultants Pty (Ltd) and Graviton Wealth Management (Pty) Ltd as Fund endorsed Financial Advisors. The aim is to assist members approaching retirement with retirement planning.

Who will be able to use the service?

Active members from the age of 50.

How much will it cost?

The financial advice will be provided at no additional cost to the members. The Fund will pay for the cost. 

How will it work?

If you are 50 years and older, you can arrange a financial advice session with one of the endorsed financial advisors.  The session might consist of a few meetings.  During this session, the financial advisor will assist you with compiling a retirement plan.

In the year of retirement, you can arrange for another session with the financial advisor to finalise your retirement planning.

What happens after retirement?

Should you opt for a Living Annuity outside the Fund and requires ongoing advice, an advice fee of 0.5% per annum of your capital amount, has been negotiated with the financial advisors.

Can members who resign also arrange a session with the financial advisors?

Yes, but the members will have to pay for the session.  Discounted rates have however been negotiated with the endorsed financial advisors.

How to arrange for sessions?

Log a ticket on synergy.tfg.co.za with your request.

 

Disclaimer: The member will be liable for any additional advice requested from the Financial Advisor, which is over and above the services paid for by the Fund (e.g. requesting advice in respect of other financial products).

 

Questions

 

What do I receive when I retire?

When you retire, your benefit will be calculated by using your Fund Value, your age, as well as your spouse’s age (if applicable) at the date of your retirement.

How much tax will I pay on the lump sum? 

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Use the Tax Calculator to assist you calculate the tax payable on a lump sum. See the Taxation of Benefits section for more information on the tax payable.


What if I want to retire, but don't need to start drawing a monthly income straight away?

You can defer the decision to draw a monthly income and become a deferred retiree. This means you may leave your retirement benefits in the Fund until a later date. 

What happens if I die after retirement?

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TFG Pensioners - What happens to your pension if you die after retirement?            

Will I get an increase on my monthly pension during my retirement years?

Yes. The Fund's pension increase policy aims to provide increases equal to 100% of inflation, subject to affordability constraints over a three-year period. View the historical increases in the table below:

 

Date

Increases

Inflation

Jan 2025

4.00%

3.20%

Jan 2024

5.40%

2.90%

Jan 2023

7.50%

6.07%

Jan 2022

5.00%

7.04%

Jan 2021

3.00%

4.61%

Jan 2020

4.10%

3.21%

Jan 2019

4.90%

4.12%

Jan 2018

5.10%

4.52%

Jan 2017

6.10%

5.18%

Jan 2016

5.00%

6.57%

Jan 2015

6.00%

4.54%

Jan 2014

6.00%

6.13%

Jan 2013

5.50%

5.78%

Jan 2012

5.70%

5.72%

Jan 2011

6.50%

5.00%

Jan 2010

7.00%

4.09%

Jan 2009

9.00%

7.22%

Jan 2008

10.00%

10.07%

 

 

Quick News

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16 Feb 2021
TFG Retirement Fund

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Pay less tax by making Additional Voluntary Contributions to your retirement Fund.
Update your Nomination of Beneficiary form
21 Nov 2016
Find out how to nominate your beneficiaries.