Dhevan Naicker

R811,659.75.

That’s the tax saving we calculated for one client — and she didn’t even know the pre-1998 public-sector tax treatment existed.

If you were already in qualifying government/public-sector service before 1 March 1998, part of a qualifying lump-sum benefit may receive special tax treatment under the Second Schedule to the Income Tax Act.

For this client, understanding that treatment made a potential R811,659.75 difference to the tax calculation.

That result is specific to her circumstances. Your own outcome depends on your service history, fund history, benefit and previous lump sums.

The question is: if you started before 1 March 1998, has this been checked properly for YOU?

Follow for more, and share this with a long-serving government colleague who may not know about it.

Retirement Wellness SA | Authorised Financial Services Provider FSP 31609. Educational information only; not financial advice.

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"DEPARTMENT OF HEALTH EMPLOYEES: if you resign, what happens to your pension money?

Cash may create a significant tax bill. An approved-fund transfer can work very differently.

Before your pension moves, understand the structure — tax, investment risk and access all matter.

Share this with a nurse, doctor or Health colleague who should see it.

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GOVERNMENT EDUCATORS: save this 7-step resignation checklist.

1. Resignation Success Plan
2. Tax planning
3. Protect pension capital
4. Perfect Approved Fund
5. Medical aid
6. Income and cash flow
7. Start the application early

If you’re planning to leave Education, don’t rely on memory — save this and send it to a teacher colleague.

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R858,000.

That’s how much one government employee’s estimated resignation value dropped after the pension formula factors changed.

And she had no idea.

If you’re a government employee considering resignation, compare your September 2025 and October 2025 pension benefit statements. The revised actuarial interest factors took effect from 1 October 2025 and affected resignation/early-exit values.

IMPORTANT: this does not mean R858,000 literally disappeared from her pension savings. It means the estimated resignation/withdrawal benefit value was lower under the revised factors.

Were you affected? Comment below with the difference you found — and share this with a government colleague who may still not know.

Follow me to understand when actuarial factors may change again and how to prepare before leaving government service.

Retirement Wellness SA | Authorised FSP 31609. Educational information only; not financial advice.

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SAPS MEMBERS: feeling like you’ve had enough?

Before resigning out of frustration, get clarity on the tax, how your money will last, and what could replace POLMED.

The goal is to make the decision from confidence — not from the emotion of a difficult day.

Share this with an SAPS colleague who may be at this point.

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TURNING 65 SOON? If your department is asking for your paperwork, don’t let the paperwork make the decision for you.

Ideally, retire-vs-resign planning should start 6–12 months before you leave government service. But if you only have a few months left, the first step is still the same: understand which route may work best for your personal situation.

We specialise exclusively in solutions for government employees. We understand the pension fund, the rules and the tax implications, and we’ve developed specialised solutions including our Perfect Approved Fund framework.

If you need clarity and want to save time, book a private consultation with us: https://retirevsresign.co.za/consult

Retirement Wellness SA | Authorised Financial Services Provider FSP 31609. Educational information only; not financial advice.

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GOVERNMENT EMPLOYEES: worried about losing GEMS if you resign?

An ordinary resignation generally affects GEMS eligibility, but that does not mean you have to be left without medical cover.

The key is to compare suitable replacement medical-scheme options before you resign — including cost, continuity of cover and your medical needs.

Save this and share it with a government colleague.

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"DEPARTMENT OF HEALTH EMPLOYEES: if you resign, where will your monthly income come from once your salary stops?

One approach may involve transferring pension benefits to an approved fund, planning any permitted cash amount carefully, and investing the balance to provide an income.

There are different ways to structure income for life. Understand the options before you leave.

Share this with a nurse, doctor or Health colleague who may need it.

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If you are a government employee considering resignation, here is a question you need to answer:

How are you going to create an income every month once your salary stops?

This is where retirement planning becomes much bigger than simply asking:

“How much is my pension worth?”

If you transfer your pension benefit into an approved retirement structure, part of the benefit may be available as a cash lump sum, subject to the applicable tax rules.

The remaining retirement money can then be used to help provide you with an income.

But there is no single income solution that is automatically right for everyone.

You need to think about:

How much cash do you genuinely need upfront?

What tax could apply?

How much income will you need every month?

How long does that income need to last?

How much investment risk are you comfortable taking?

And what do you want to happen to the money if something happens to you?

If you started working before 1998, there may also be additional tax considerations linked to your service history.

This is why planning before resignation matters.

The goal is not simply to leave government with money.

The goal is to understand how that money can support your life after your salary stops.

Follow for more simple retirement and financial-planning guidance for government employees.

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Dhevan Naicker | Certified Financial Planner | Author
Retirement Wellness SA is an Authorised Financial Services Provider — FSP 31609. All content is information only and does not constitute financial advice. Tax and retirement outcomes depend on individual circumstances and applicable rules.

If you're a government employee considering resignation, you have likely heard the term "approved fund." But what does it actually mean?

When you resign, instead of taking your money out in cash and paying a significant amount of tax, you have the option of transferring it into an approved fund.

The two main options are a preservation fund or a retirement annuity (RA).

Here’s why this decision requires careful thought:

You only get one chance to get this right, with virtually no going back.

Imagine transferring R5 million into an approved fund. If the market drops by just 10%, your balance falls by R500,000.

And investment risk is only part of the story.

You also need to evaluate:

• Tax implications

• Product costs
• Rules around accessing your cash
• What happens to your family if something happens to you
Simply choosing any approved fund is not enough. You need the right approved fund structured around your goals, your family, and your circumstances.

—Dhevan Naicker | Certified Financial Planner | Author

Retirement Wellness SA is an Authorised Financial Services Provider — FSP 31609. All content is information only and does not constitute financial advice. Always seek advice tailored to your personal circumstances.