The Fund is a Defined Contribution Provident Fund, where both you, the employee, and your employer make contributions. You'll need to contribute a minimum of 7.5%, as laid out in our Fund Rules. Plus, there's an option to increase your contribution up to 27.5% if you're looking to reduce your tax liability. It's not just about saving for the future, but also managing your taxes effectively.

The following applies for each of category of your retirement savings:

If you were 55 or older on 1 March 2021 (i.e. you were born before 1 March 1966) and have been a member of The Hospitality and General Provident Fund since then, your options are slightly different, unless you opted into the Two-Pot System. If you have not opted into the Two-Pot System, the Vested Pot applies to you, and you may take a portion in cash, subject to tax in line with the tax table for retirement.

What is your normal retirement age?

The normal retirement age is at 65 according to the Fund Rules.

The late retirement age is available up to the age of 70, allowing for an extended working period if desired.

Can you retire before your normal retirement date?

Yes, at your own choice and with the approval of your employer, you may retire early from the age of 55. You would be entitled to your Fund Balance.

What is your retirement benefit?

You would be entitled to your Fund Balance.

Retirement Benefit: Total of all contributions made to the Fund up to the date of retirement, LESS Costs, PLUS Monthly Interest as earned by the Fund Investments

How is your benefit paid?

When you retire, your Fund Balance will be paid to you as follows (you have 2 options):

• A portion paid in cash and the rest used to purchase a pension from a registered insurer that will pay you a monthly pension for the rest of your life.
  
  
• You will qualify for a tax-free cash portion, as determined by SARS from time to time. The monthly pension will be taxed when it is paid to you on a monthly basis.

OR

• Purchase a pension with your full Fund Balance that will pay you a monthly pension for the rest of your life.
  
  
• This monthly pension will be taxed when it is paid to you on a monthly basis.

Irrespective of your age at 1 March 2021, If your benefit amounts to less than R247 500 at the time of your retirement, you are able to take the entire benefit in cash, subject to the tax payable.

Click here to read more about the tax you might pay.

Always remember to consult your financial advisor before making any important decisions.  Click here for more information on where you can find a financial advisor.