What to Do With Your Pension When Changing Jobs

Do not cash out by default

Leaving an employer triggers a choice: transfer to a preservation fund or new employer fund, or take a cash payout. Cash is taxed on the retirement lump-sum table and destroys compounding — the most expensive 'raise' you will ever take.

Preservation keeps the tax advantage and discipline until retirement or a permitted transfer.

Two-pot and partial access

Under the retirement reforms, a savings component may allow limited withdrawal while preserving the retirement portion. Understand your fund's rules before you resign — not all balances split the same way on exit.

Even permitted withdrawals should fund genuine emergencies, not lifestyle — each rand withdrawn is a rand that will not compound for twenty years.

Check waiting periods on the new fund

Group life, disability and income continuation at the new employer may have waiting periods. Bridge cover if you have dependants.

MyGenie's Changing Jobs calculator compares old and new package value including retirement contributions, not just gross salary.

This article is illustrative and educational. It is not financial, tax, or legal advice. Figures are examples only — model your own situation in MyGenie or speak to a licensed financial adviser.