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Think before cashing in your pension

John, a 37-year-old production manager who is facing the possibility of being retrenched, has recently approached me for options relating to his retirement funds.

He is married with two children and not sure when he will find alternative employment. He is considering using the proceeds of his retirement fund to settle his bond.

If we consider that only seven out of every 100 South Africans are able to retire independently and, further, that one of the main reasons for insufficient capital at retirement is that funds are not preserved in the event of a job change, it is crucial that John pays careful attention to this decision. Read more…

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