It is important to note that you are only allowed one withdrawal from your retirement funds before the age of 55.
One of the biggest consequences of making a once-off withdrawal is rarely considered by clients: the lost opportunity of compounding interest earned over time. If the time value of money (the idea that a Rand today is worth more than a Rand in the future because of its potential earning power) is not applied, you could be missing out on thousands of Rand at retirement.
The financial consequences for taking a withdrawal from your retirement savings greatly affect your ability to meet retirement saving goals. The alarming fact is that many clients make once-off withdrawals every time they change employers. When multiple withdrawals are taken, the negative effects compound, creating bigger obstacles for you to overcome before you reach retirement.
Pentagon Financial Solutions PTA (Pty) Ltd can provide a client with advice and the appropriate product solutions, inclusive of a preservation fund to protect your accumulated wealth, and assisting in investing in a savings plan within a diversified portfolio, to provide for your maturing family.