Preserving your retirement savings when changing jobs is crucial for maintaining your financial security in retirement. Here are some ways to preserve your retirement savings:
You can transfer your pension fund or retirement annuity from your employer into a separate preservation fund account. Another option is to transfer your retirement savings to a retirement annuity. If your new employer offers a pension fund, you may even be able to transfer your retirement savings from your current employer’s fund to your new employer’s fund.
Each of these options has its own rules in terms of investment choice, taxation, access to funds before and at retirement and retirement age. Before you leave your employer’s retirement fund, seek financial advice so you can understand the implications of each option and make an appropriate choice.