Preservation fund

Preserve and continue to grow your retirement savings in a tax-efficient way if you have to leave your retirement fund for any reason, such as changing jobs.

Your retirement nest egg typically needs to last 30 years or more, which will require disciplined saving over your working life.

Our tax-efficient solutions can help you make the most of your savings over the long term. Don’t be tempted to cash in your pension or provident fund savings when you are changing jobs or facing retrenchment.

How rewarding your retirement will be depends on how well you plan and make provision for it now.

To stay on track with your retirement goals, it is essential that you preserve and grow your accumulated retirement savings throughout your career. Transferring your retirement benefit to a preservation fund will allow your retirement savings to keep on growing tax free.

Benefits of Ninety One Preservation Funds

Our preservation funds provide a tax-efficient way to preserve your retirement savings if you are leaving your employer’s retirement fund.

No income, capital gains or dividend withholding tax is payable within the preservation funds, helping your retirement savings grow faster.

A once-off withdrawal at any time is permitted prior to retirement.

You can retire any time from age 55.

Here’s how it works

What you need to do:

Complete our preservation fund application form to transfer your retirement benefit to the Ninety One Pension Preservation Fund or the Ninety One Provident Preservation Fund.

Select one or more funds from our range of funds.

View our Core fund range

What happens with your money?

The fund managers invest your money in a portfolio of assets such as equities, bonds, cash and listed property, based on your fund selection.

The investment is managed on your behalf according to the fund’s objectives, for example, beating inflation over a certain time period. This plays a key role in determining the return on your investment.

Can I access my money?

Before retirement:

  • One withdrawal up to the full value is permitted (excl. transfers from the Government Employees Pension Fund).

At retirement (from age 55)

  • You may take a maximum of one-third of the investment amount as a cash lump sum, plus the provident fund vested benefits* in your fund, if applicable. If the value of your non-vested benefits is equal to or less than R247 500, you can take the full amount as a cash lump sum.
  • Any portion of the benefit that you do not take as a lump sum, must be invested in a compulsory annuity.

What are the tax benefits?

  • No income, capital gains or dividend withholding tax is payable within the fund.
  • You only pay tax if you take a lump sum before and at retirement.

*What are vested benefits?
Any provident fund or provident preservation fund value on 1 March 2021, plus future growth/fund return on this amount is referred to as a member’s “vested benefits”.  The one-third rule does not apply to members’ vested benefits. Therefore, any member who has vested benefits in a retirement fund may take these in full as a cash lump sum at retirement. Please note that members of provident funds who were 55 or older on 1 March 2021, may have additional vested benefits. Members need to consult the administrator of their retirement fund for more information on their vested benefits.


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Important information

All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only.

In the event that specific funds are mentioned please refer to the relevant fact sheet in order to obtain all the necessary information in regard to that fund.

Collective Investment scheme funds are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. Funds are traded at ruling prices and can engage in borrowing and scrip lending. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. A schedule of charges, fees and adviser fees is available on request from the manager. Additional adviser fees may be paid and if so, are subject to the relevant FAIS disclosure requirements.

Investment Team: There is no assurance that the persons referenced herein will continue to be involved with investing for this Fund, or that other persons not identified herein will become involved with investing assets for the Manager or assets of the Fund at any time without notice.

Investment Process: Any description or information regarding investment process or strategies is provided for illustrative purposes only, may not be fully indicative of any present or future investments and may be changed at the discretion of the manager without notice. References to specific investments, strategies or investment vehicles are for illustrative purposes only and should not be relied upon as a recommendation to purchase or sell such investments or to engage in any particular strategy. Portfolio data is expected to change and there is no assurance that the actual portfolio will remain as described herein. There is no assurance that the investments presented will be available in the future at the levels presented, with the same characteristics or be available at all. Past performance is no guarantee of future results and has no bearing upon the ability of Manager to construct the illustrative portfolio and implement its investment strategy or investment objective.

Certain Ninety One SA funds are offered as long-term insurance policies issued by Ninety One Assurance Limited, a registered insurer in terms of the Long-term Insurance Act. These pooled products are administered by Ninety One SA (Pty) Ltd (an authorised financial services provider) and underwritten by Ninety One Assurance Limited.

This is the copyright of Ninety One SA (Pty) Ltd and its contents may not be re-used without Ninety One’s prior permission. Ninety One SA (Pty) Ltd is a member of the Association for Savings and Investment SA (ASISA). Ninety One SA (Pty) Ltd & Ninety One Investment Platform (Pty) Ltd are authorised financial services providers. Ninety One Fund Managers SA (RF) (Pty) Ltd and Ninety One Alternative Investments GP Proprietary Limited are registered under the Collective Investment Schemes Control Act.