Should I put my provident fund into a fixed deposit or what?

I am retiring at the end of December, although I will only be turning 65 on 21 April 2026.

- Munaf Mukadam

The question: I have the option to take all of my provident funds, but I prefer to pay no costs and go the fixed deposit route, either with Aluma or Nedbank. What other options are available?

The answer: It is possible for you to withdraw the full provident fund value and invest it in a fixed deposit. However, to assist you in making an informed decision, I've provided some relevant information.

Potential benefits
By withdrawing your full provident fund value, the capital becomes discretionary in nature. This means that the capital is fully available to you at any time.

If you transfer your provident fund value (or a portion of it) into a life annuity or living annuity, the capital in the annuity won't be fully accessible as these products only pay out an income amount.