This morning I wake to a friend’s thoughts on pensions. Where he considers how we have wasted our money on life and living it up so much so that now we must work in our pension years.
Tony was saying
“Spending money on things that were important all those years ago. Like comparing your salary to the number of Castle largers it was worth. Like dop jou salaris tot dat dit klaar is. Like never thinking of buying a porzie. The wonder years when my HP car instalment with Trust Bank was R18.50 per month. Like walking into the Pamerston on a Saturday morning and shouting ,"Mr Barman, give the pub a round." Talk about days we thought would never end. But lifes values change as we age and all of the above becomes wasted wages. So here I find myself working overtime on a Sunday while being in the pension years shadow. To do what and to finance what new value and intentiton in this wonderful life of which we all only have one. Just to imagine having all that past wasted money in the hand right now. Think that breakfast in America would not be another of a collection of previous bad decisions. Eish.PMS is for real today.
It is sad that even those who did save have nothing or not enough. Then a new law even took the savings of those who had forced pensions away. So we are all in the same boat. Working on fighting for our rights has been so demanding, hurtful and horrible just to try get our people a bit of the pie. Especially when no one comes to hear what you have to tell them, unfollows you so they cant see your stories and block their years. Really hurtful!!! I am in the quandary right now as to whether to do it for yet another year or to go look for my piece of pie. After all no one cares. Or do they?
Hum just one question? Where is the money going to come from with there being so much unemployment? Is it not good to spend a few more years training the next bunch so you can get that help?
You Qualify for an Older Person’s Grant if You:
·Are a South African citizen, permanent resident or refugee
·Are a permanent resident of South Africa
·Are 60 years or older
·And your spouse (if you have one) pass the means test
·Are not living in a state institution
·Are not receiving payments from another social grant
A lousy maximum amount that you will get is R1 500 per month. If you are older than 75 years, you will get R1 520. Yet we are forced to pay a maid R3500 per month. So who do we let go first when we get retired? The maid! Even if she has been a good and faithful employee she goes. Yet this is when we probably need a maid most as we lose the strength to do our own cleaning, moving stuff and if we fall ill we have a nurse who knows us at hand.
Next we sell off everything we have. But it is not enough money as the gov still takes his hefty cut. Then we move into a rented place. Rents never come down they just go up, up and up. Where if you had bought your own shack the building would be paid off to leave something for your kids or even better if you had been a good saver it would be free!
The SASSA (South African Social Services Agency) is based on a means test. Basically you have to be very poor to qualify and you have to prove this by producing the following documents:
• Your official identity document (ID).
• Proof of
o your marital status or a copy of your spouse’s death certificate, their will and liquidation
o your address.
o your income.
o your assets
o the value of the property you own.
o private pension
o Money in the bank via three-month bank statement.
o Unemployment Insurance Fund (UIF) or discharge certificate from employer.
The effect of the alignment between provident and pension funds will not affect provident fund members who are currently close to retirement. All provident fund members will still be able to take all their retirement savings that would have been accumulated as at March 1 2016 as a cash lump sum whenever they go into retirement. The conversion of a portion of the retirement money into income at retirement will only apply to new contributions made by those who are younger than 55 when the legislation comes into effect. This means that members who are 55 years and older on March 1 2016, when the law comes into effect, will not be affected. Workers who are below 55 years on March 1 2016 will not be asked to annuitise or take a pension on the portion of new contributions if the total of those accumulated savings is R247 500 or less when they reach retirement. Irrespective of age, whatever a member has accumulated in the provident fund as at March 1 2016, and the growth on those amounts, will be available to them as a cash lump sum when the person retires. See full story here
The 2013 law allows for a 27.5% tax deduction up to a maximum of R350 000 per year. The key condition for enjoying the tax deduction is that members take a lump sum up to one-third the amount, with the rest to be annuitised (an annuity investment converted into a series of periodic income payments).
IT'S NOT TO LATE TO GET 27.5% tax deduction up to a maximum of R350 000 per year.
Members of provident , pension and retirement annuity funds will be able to claim a tax deduction on their contributions to their funds.