Will I be penalised for a Liberty RA withdrawal?

Please note: As of 1 September 2024, the rules for withdrawals have changed with the implementation of the two-pot retirement system. Read more about the two-pot retirement system changes here.

Question:

Kindly advise if there are any penalties that I can incur should I make a withdrawal on my Liberty RA, which I suspect is worth less than R7 000.00. It’s currently paid up, as per my request to Liberty.

Answer:

Typically, if you have made your Liberty RA account paid up, Liberty will already have deducted any termination charges. Understand, however that you can only withdraw your investment (actually retire from the fund) if you are over the age of 55.