Preservation Fund

Did you know?

Most people aren't saving enough for retirement. A shocking 73% of retirees rely on social grants and the average person only replaces 25-30% of their income in retirement, leaving many struggling to survive. This, combined with low discretionary savings and high stress levels, paints a worrying picture for many.

EasyEquities can help.

We offer two EasyEquities Preservation Funds (Pension and Provident), designed to secure your future and give you peace of mind.

Here's why you need it:

Protect Retirement Savings: Preservation funds help protect accumulated retirement savings from being spent prematurely, ensuring that funds are available for retirement and not used for short-term needs.
Tax Efficiency: By transferring retirement savings into a preservation fund rather than cashing out, South Africans can defer tax on their retirement savings, preserving more of their funds for future growth.
Growth Potential: Preservation funds keep retirement savings invested, allowing them to benefit from potential growth over time, which can help counter the effects of inflation and build a larger retirement nest egg.

What is a Preservation Fund?

A Preservation Fund is a specialised retirement savings account designed to safeguard your funds when you switch jobs or face career changes. Instead of withdrawing your retirement savings and facing potential tax obligations, you can transfer your savings into a Preservation Fund, allowing your money to continue growing until you retire. You can transfer funds from a previous employer pension or provident fund, a divorce settlement, or even the Government Employees Pension Fund (GEPF).

Benefits of a Preservation Fund

Avoid Tax Liabilities

Cashing out your retirement savings can results in hefty tax liabilities. A Preservation Fund allows you to avoid these liabilities and keep more of your money working for you.

Maintain Growth

Keeping your savings in a Preservation Fund means your money stays invested, benefiting from tax-free market growth and compounding returns over time.

Financial Flexibility

You have the option to make one partial or full withdrawal before retirement, providing access to funds if needed.

Secure Future

By preserving your retirement savings, you ensure that you’re better prepared for a comfortable retirement.

Switch Providers

If you already have a preservation fund you have the ability to transfer it to EasyEquities.

Why Choose EasyEquities?

Effortless Management

Our platform offers a user-friendly experience, making it easy to manage and track your Preservation Fund investments.

Investment Variety

Access a diverse range of investment options tailored to different risk appetites and retirement goals.

Transparent Fees

Enjoy competitive, transparent fees designed to maximise your investment growth.

How to Get Started

Transfer

Activate your Preservation Fund & Transfer your funds:

Log in to your EasyEquities account
Select the top left menu
Select Add and Manage Accounts
Click Activate New Accounts
Choose between the Pension Preservation Fund and the Provident Preservation Funds, depending on the source of your funds, and select Activate Account
Nominate beneficiaries for the account
Transfer your retirement savings from your existing pension, or provident fund

Choose

Choose your investments: choose from a variety of investment options that fit your retirement strategy.

Monitor

Monitor and adjust: Use our platform to monitor performance and make adjustments as needed.

Frequently Asked Questions

What makes a Preservation Fund different from other retirement accounts?

A Pension Preservation Fund and the Provident Preservation Fund are both types of retirement savings vehicles in South Africa, designed to preserve an individual's accumulated retirement savings when they leave an employer's pension or provident fund before retirement. These funds are intended to maintain and grow the savings until the individual formally retires.

What are the different types of preservation funds?

Provident Preservation Fund is typically created when a member of a Provident Fund (usually a defined-contribution fund provided by employers) leaves their employer. The member can transfer their provident fund savings into a preservation provident fund to retain the accumulated retirement savings.

Pension Preservation Fund is typically used when a member of a Pension Fund (also generally defined-contribution but sometimes defined-benefit) leaves their employer. The member can transfer their pension fund savings into a preservation pension fund.

Can I withdraw funds before retirement?

Yes, you can make one partial or full withdrawal before you retire, giving you flexibility in times of need.

What types of investments are available?

The EasyEquities Preservation Fund allows you to structure your fund in a way that suits your individual situation, choosing from a range of Regulation 28 compliant managed bundles and unit trusts.

The EasyEquities Preservation Fund offers a wide range of different investment products, with risk and return profiles to suit all investors, including but not limited to money market, balanced, conservative, moderate, high equity.
We offer local and global investment exposure through unit trusts from the top providers in the country like Allan Gray, Satrix, Coronation, NinetyOne and more. In addition you have access to bundles (managed portfolios) from EasyAssetManagement and Rise.

How are fees structured?

We offer transparent and competitive fees to ensure more of your money remains invested. For detailed fee information, please visit our Help Centre.

How do I transfer my retirement savings to EasyEquities?

You can transfer your existing Pension or Provident fund to an EasyEquities Preservation Fund.

How to Transfer

You'll need a completed EasyEquities Preservation Fund transfer application form, a copy of your ID (front & back), and proof of your tax number (any SARS document showing your name and tax reference number).
- Provident fund transfer application
- Pension fund fund transfer application
Email us the completed form, your ID copy (front & back), and proof of tax number at [email protected]
We'll send you documents to sign and submit to your current provider to initiate the transfer.

Learn more and download the application form: Preservation Fund FAQ

Protect Your Retirement with an EasyEquities Preservation Fund