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Tax payable on retirement compared to resignation

Posted 17 May 2016

Pele says:
16 May 2016 at 16:25

Do u pay more tax if u resign from your work?or is it the same as with reaching pension date.

TaxTim TaxTim says:
17 May 2016 at 9:47

The tax rates are much more favourable if you wait to retirement age of 55 years. Please see our Lump sum calculator where you can see the difference between withdrawing before or after retirement. Remember too that if you wait to retirement, you can only draw up to one third of your pension as a lumpsum and the balance needs to be taken as a monthly annuity. If you withdraw prior to retirement, you can withdraw the full amount.

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