{"id":1152,"date":"2017-03-28T10:38:58","date_gmt":"2017-03-28T08:38:58","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?p=1152"},"modified":"2025-07-19T14:15:05","modified_gmt":"2025-07-19T12:15:05","slug":"pre-retirement-options-available-to-an-individual","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/pre-retirement-options-available-to-an-individual\/","title":{"rendered":"Pre-retirement Options Available to an Individual"},"content":{"rendered":"\t\t
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Preserving Your Pension: A Smart Move Toward Retirement Security<\/h3><\/span><\/div>
In the modern working environment, many companies provide their employees with the opportunity to save a portion of their current income in a pension, in preparation for retirement. The employee\u2019s contribution is normally accompanied by an employer contribution. Employees may also make additional voluntary contributions to supplement their savings, and together these contributions amount to saving towards retirement.

\n\nThough the need for this accumulation and preservation is widely understood, it is however becoming increasingly common that individuals deplete these funds before retirement by withdrawing a portion of their full pension benefit before they have reached retirement age. In some cases, this may be as a result of circumstances, such as changing career paths, being retrenched or dismissed. These circumstances normally also make the money saved up for retirement available to you.

\n\nMaking wise choices when deciding what to do with this money when it becomes available is very important. Withdrawing it in cash means that you will need to rebuild your retirement savings, and would not have accumulated as much for your retirement when you no longer have a steady monthly income. The wiser option would be to preserve your retirement savings until retirement.

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OPTIONS AVAILABLE TO PRESERVE YOUR SAVINGS IN A FUND<\/h3><\/span><\/div>
Though the option to withdraw exists, the following options are also available to carry on growing your savings in a fund:

\n\n\u2022 In the situation of movement between two employers, more often than not, the new employer will have a pension fund of its own. Therefore, it is possible to simply have the saved funds transferred to the new employer\u2019s pension fund. In this case, you will be informed of the benefits of the new fund, and can simply carry on making contributions to your already accumulated savings along with the new employer\u2019s contributions.

\n\n\u2022 In the event that the new employer does not have a pension fund, or if you have resigned, been retrenched or become self-employed, the option exists to leave the savings in the existing retirement fund. In this case, the savings will continue to be invested in that fund until your retirement and you will still be entitled to the benefits.

\n\n\u2022 It is also possible to invest these savings in a preservation fund. In this case, you transfer your benefit into the preservation fund. Here it will be invested and continue to grow until an agreed retirement age is reached.

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BENEFITS OF PRESERVING YOUR SAVINGS TILL RETIREMENT<\/h3><\/span><\/div>
It is vital to remember that in the absence of income generating activities, a retired individual will most likely not be making money, but rather spending it. This highlights why the benefits of preserving retirement savings cannot be exaggerated. The following are some of the reasons why it is beneficial for retirement savings to be preserved:

\n\n\u2022 Your retirement savings plan continues. People are living longer and leading more active lives in retirement. For this reason it is more important than ever to think about where your income will come from when you retire.
\n\u2022 It is tax effective. Cash withdrawals from retirement savings are taxed while keeping savings in an approved fund does not attract tax until retirement.
\n\u2022 Savings will remain intact and continue to grow until retirement, therefore, gaining investment income over time.
\n\u2022 It keeps your money safe. No matter what happens to your other finances, the money you preserve is safe from creditors.
\n\u2022 It eases the burden for your care on other family members. You will be better equipped to provide for yourself in your old age.
\n\u2022 Lastly, it is extremely vital to realise that the \u201ctime value of money\u201d would take effect. N$ 1 today will not be N$ 1 tomorrow. In light of this, it is highly likely that whatever can be purchased for N$ 1 today, would require more than N$ 1 in the future. Investing today ensures that you are better prepared to deal with the expenses of tomorrow.

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Summary<\/h3><\/span><\/div>
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Options to Preserve Your Retirement Savings<\/h5><\/div>
If you\u2019re changing jobs or facing employment transitions, there are several ways to keep your retirement savings intact:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • <\/span>Transfer to a New Employer\u2019s Pension Fund<\/li>
  • <\/span> Leave Savings in Your Current Fund<\/li>
  • <\/span>Invest in a Preservation Fund<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Why Preserving Retirement Savings Is So Important<\/h5><\/div>
    Your retirement years are likely to be spent without regular income, so it\u2019s essential to ensure you\u2019re financially prepared. Preserving your retirement savings offers several key benefits:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    • <\/span>Continued Retirement Planning: it\u2019s vital to ensure you\u2019ll have a sustainable income in the future.<\/li>
    • <\/span>Tax Advantages: funds preserved in approved retirement vehicles grow tax-free until retirement.<\/li>
    • <\/span>Compound Growth Over Time: The longer your money remains invested, the more it benefits from compound interest and investment returns, significantly increasing your total retirement benefit.<\/li>
    • <\/span>Protection from Creditors: Preserved funds are protected from claims by creditors, providing you with peace of mind in financially difficult times.<\/li>
    • <\/span>Reduced Burden on Family: By preserving your retirement savings, you\u2019ll be in a better position to support yourself during old age, easing potential dependency on family members.<\/li>
    • <\/span>Combatting Inflation (Time Value of Money): Preserving and investing your funds today means you are better equipped to handle the increased cost of living tomorrow.<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      <\/h5><\/div>
      Early withdrawal of your retirement savings should be approached with great caution. While the immediate access to cash can be tempting, the long-term disadvantages often outweigh the short-term benefits. Preserving your pension today helps ensure that you enjoy financial independence and peace of mind in retirement.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      Preserving Your Pension: A Smart Move Toward Retirement Security In the modern working environment, many companies provide their employees with the opportunity to save a portion of their current income<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[426],"tags":[],"class_list":["post-1152","post","type-post","status-publish","format-standard","hentry","category-pension-funds"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/comments?post=1152"}],"version-history":[{"count":7,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1152\/revisions"}],"predecessor-version":[{"id":35705,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1152\/revisions\/35705"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=1152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=1152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=1152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}