Can I withdraw my Sanlam RA before age 55?

While your Retirement Annuity (RA) is with Sanlam, the rules governing early access are set by legislation and apply to all RAs in South Africa, including those offered by 10X Investments and other providers. Under the current two-pot system, you do have some options for accessing a portion of your retirement savings.

Your current withdrawal options

From the Savings Component: The two-pot system now allows you to make one withdrawal per tax year from the savings component of your RA, even before age 55. The minimum withdrawal amount is R2,000, and you'll pay tax at your marginal rate on any withdrawals.

From the Retirement and Vested Components: The bulk of your RA savings must remain invested until age 55, except in specific circumstances such as:

• Permanent disability preventing you from working
• Formal emigration through SARS
• When your total retirement savings across all funds is less than R247,500

Understanding penalties and costs

If you're considering moving your RA, be aware that Sanlam, like many traditional providers, may charge early termination penalties to recover their upfront costs, particularly commissions paid to brokers. These penalties can significantly reduce your savings.

Looking ahead

While accessing retirement savings early can be tempting, remember that your RA offers valuable tax benefits and is designed to secure your financial future. If you're considering changes to your retirement planning, you might want to explore more cost-effective options.

10X offers low-cost RAs with no hidden fees or early termination penalties. Our transparent fee structure means more of your money works for your retirement. You can transfer your existing RA to 10X without affecting the regular withdrawal rules or tax benefits.