27 May 2019
The offer is available from 1 April 2019 until 30 September 2019 and it is estimated that a maximum of 30 000 public sector employees will be considered, provided they meet the criteria of age and other criteria set by each sector department. It’s important to note that this process is completely voluntary and up to the individual concerned whether they wish to apply or not.
National Treasury will carry the cost of any penalties relating to the pensions of those who are approved to take early retirement and the individuals will not suffer any financial loss as a result of taking early retirement.
Government urgently needs to spend on critical areas such as health, education, social security and infrastructure – and this has to be balanced against its wage bill. Government will ensure, when considering applications for early retirement, that service delivery is not affected and that those with scarce and critical skills, e.g. doctors, are retained.
Those considering taking up this offer should obtain advice from a qualified financial adviser in order to understand the different retirement income solutions available. Each of these solutions has its own advantages and disadvantages – relative to the personal circumstances of the individual concerned. In some instances, combining different solutions may provide a better outcome in the form of a more sustainable, long-term retirement income and the provision of a legacy for dependants.
The retirement rules of the specific fund will apply. Depending on the number of years’ service with the fund, the following options are available:
Navigating the retirement journey alone can be daunting. A qualified financial adviser can look objectively at your financial situation and advise accordingly.