Pension bridging loans are loans taken against your pension and provident funds or retirement annuity to supplement your financial responsibilities in the case of retirement, retrenchment, resignation, dismissal, or divorce. These events can put a lot of strain on you, especially if you’re not prepared for them.
Pension Fund vs Retirement Annuity
While you can take bridging loans against these types of funds, it’s important to know that they’re not the same. A pension fund is owned by your employer and has a fixed contribution amount each month, while a retirement annuity is completely independent of your employer and you choose the amount that you contribute each month.
With the retirement age in South Africa sitting at 65, it’s important to set yourself up well in advance of these years as you work your way to a comfortable retirement. Both a pension fund and a retirement annuity can be invaluable when you need them.
What is a Pension Bridging Loan?
A pension bridging loan is a lump sum amount taken against your pension fund while you wait for your full pay-out date. These loans can help you stay afloat when times get tough once work is no more. Retirement can be tricky, and it only takes one glimpse at retirement tax tables to see that it’s not a simple process. There can be a lot of red tape and obstacles, as well as challenges and struggles when retirement comes knocking, or worse still when retrenchment or death shows its face.
This is why it’s important to keep your finger on the pulse and stay informed of your options leading up to retirement and with all the other possibilities of loss of work in mind, too.
The Benefits of a Pension Bridging Loan
Pensions can be hard work when it comes to getting your money out. The process of receiving your pay-out, and the numerous phone calls and emails required can make it a very unenjoyable experience for you. However, there is a solution that can make all the difference. Take out a pension bridging loan! These loans literally “bridge” the gap between retirement (or dismissal, retrenchment, death, and divorce) and pay-out. This means you won’t have to wait longer than you need to, and you can start making your funds work for you in your golden years.
This is what you’ve worked so hard for all your life. Why wait any longer?
How To Take Out A Pension Bridging Loan
If you’re due to receive your pension fund pay-out within the next 6 months, there’s good news; you qualify for an early pension pay-out through a pension bridging loan. All you need to do is head over to their website to apply for your pension bridging loan. They’re a trusted unsecured provident loan lender and they also consider black-listed clients.
Preparing for your future can be a daunting and scary task, but it doesn’t have to be. Take a deep breath, stay calm, and make the next right choice. One step at a time.