I am changing jobs and am faced with the decision regarding my retirement fund. I have the choice to either transfer it into my name or opt for a cash payout to alleviate some of my existing debt. Due to the uncertain nature of finding another job in the immediate future, and considering the long-term implications, I’m uncertain which route would serve me best. Can you advise?
Elke Brink, Wealth Adviser at R21 Wealth Management Stellenbosch Technopark:
When we change employment, the temptation is always there to access our retirement funds, as the documentation is often provided as a matter of course and future opportunities are still unclear. The power of preservation proves otherwise and just benefiting from time, and compound interest, can have a life-changing effect. The average person will change jobs around 12 times in their lifetime (according to a 2019 Bureau of Labour Statistics (BLS) survey of baby boomers in the USA) – even more reason to reinvest your retirement funds every time you make
