Vick Lallbahadur - Masthead Financial Planning
Firstly, it is difficult to provide wholistic, comprehensive advice without all the necessary information, but I will provide generalist information to guide you. Please do remember to consult a financial planner of your choice, who can provide more detailed advice with more detailed information.
It is important to note that the Government Employees Pension Fund (GEPF) makes all decisions based on formulas and not conventional systems as independent financial service providers do.
With regards to retirement verses resignation – should you retire from employment currently, you will receive your pension funds (subject to GEPF formulas). You will still receive your first R500 000 portion taxed at 0% and the remaining funds must be used to purchase either a GEPF annuity or independent annuity.
If you resign at 65 as planned, you will have gained more funds within your pension fund due to contributions, interest earned per annum, time within the fund and time employed.
Investing in forex and offshore investments could yield results, but these investments are very high risk and could also mean high losses.
Usually at retirement age, it is advisable to lean towards more conservative investments, as these are less likely to perform badly. Conservative investments also mean you are more cautious with the funds you’ve earned over your career as it is possible you may not have the opportunity to recover these funds if losses occur within high-risk investments.