Empower Your Financial Future

Explore our comprehensive resources to master financial planning with transparency and independence.

Pension Insights

Gain in-depth understanding of pension options and strategies.

Expert Guidance

Access personalised advice from leading financial experts.

Transparent Tools

Utilize our tools designed for clarity and informed decision-making.

GEPF Members: Understanding Your Options

GEPF Retirement Options

As a GEPF member, you have specific options when you retire. Understanding these options is critical to maximizing your retirement benefits and securing your financial future.

Normal Retirement

Members with 10 or more years' service receive:

A gratuity (lump sum payment)
A monthly pension for life

Early Retirement

Under certain circumstances, members may retire early with:

Reduced benefits based on years of service
Potential penalties for early withdrawal

Ill-Health Retirement

Members who cannot work due to medical conditions may qualify for:

Enhanced benefits compared to early retirement
No early retirement penalties

GEPF Resignation Benefits & Warnings

If you resign or are discharged before retirement age, you have only two options with significant consequences for your financial future:

Option 1: Cash Gratuity

Receive your benefits as a once-off cash lump sum.

WARNING: This option subjects you to significant tax penalties and permanently reduces your retirement security. The South African Revenue Service (SARS) applies progressive taxation that can take up to 36% of your withdrawal amount.

Option 2: Transfer to Approved Fund (Recommended)

Have your benefits transferred to an approved retirement fund.

BENEFIT: The amount transferred is not taxed at this point. Tax is only deducted when you retire or withdraw cash from the new fund later.

Important Note: If benefits are transferred, GEPF pays your "actuarial interest" to your new fund, protecting the value of your retirement savings.

Understanding Tax Implications

Withdrawal Benefit Tax Rates

When you withdraw from your pension fund before retirement, these tax rates apply:

Taxable Income (R)	Rate of Tax
1 - 27,500	0% of taxable income
27,501 - 726,000	18% of taxable income above 27,500
726,001 - 1,089,000	125,730 + 27% of taxable income above 726,000
1,089,001 and above	223,740 + 36% of taxable income above 1,089,000

Example: If you withdraw R1,500,000, your tax would be approximately R370,740, leaving you with only R1,129,260 - a loss of nearly 25% of your savings to tax!

Retirement Benefit Tax Rates

When you retire, these more favorable tax rates apply to lump sums:

Taxable Income (R)	Rate of Tax
1 - 550,000	0% of taxable income
550,001 - 770,000	18% of taxable income above 550,000
770,001 - 1,155,000	39,600 + 27% of taxable income above 770,000
1,155,001 and above	143,550 + 36% of taxable income above 1,155,000

Key Benefit: At retirement, the first R550,000 is tax-free, compared to only R27,500 for pre-retirement withdrawals. This is a significant advantage of preserving your pension until retirement.