How long does Sanlam Pension Fund take to pay out?

It typically takes between 4 and 12 weeks to process a retirement fund pay-out (21 business days at 10X Investments), from the time your last contribution is invested or the required instruction forms are received by the administrator (whichever is the later).

If you stopped working in November, then your employer has held up the process, but if you still worked a part of December (as your resignation date suggests), then your last contribution would only have been invested at the end of December or early January and your process would not be delayed by your employer handing in the forms in January only.

Cashing In Your Pension Fund

According to Stats SA, the unemployment rate increased to a historic high of 30,1% in the first quarter of 2020.

It is estimated that a further 3 million South Africans have lost their jobs during the country’s nationwide lockdown with more job losses still to come. Losing your income may have been out of your control, but the next steps you take are – and they could dictate your future financial health.

Sherwin Govender, Business Development Manager at Glacier by Sanlam, suggests five things to consider before you cash in on your pension fund.

1. Don’t Rob Your Retired Self

Retirement savings are your money – but they belong to you when you retire. Spending it now could mean that you won’t have enough saved to live on when you retire. Not having enough retirement savings means you will need to find income-generating employment after you retire. If jobs are scarce now, what will the job market look like when you’re 60?

2. Cashing Out Your Pension Fund Is Taxing

You can only cash out your pension fund if you withdraw from the pension fund, in other words, when you resign or lose your job. Losing your job and retiring, however, are two different scenarios:

If you retire, you can only cash out up to one-third, and the balance must be used to purchase an annuity
If you withdraw (when you find a new job and resign, or are retrenched), you could typically transfer as much of your funds as possible to a preservation fund at a registered financial services provider. Other options would be transferring to a retirement annuity or the new employer pension fund. However, you can cash out the full amount, but the tax you pay on the cash lump sum would be more than if you retired from the fund.

The tax payable when cashing out your pension fund is calculated as follows:

The first R25 000 is not taxed
The balance up to R660 000 is taxed at 18% of the amount over R25 000
The balance up to R990 000 is taxed at R114 300 + 27% of the amount over R660 000
The remainder is taxed at R203 400 + 36% of the amount over R990 000

3. What You’ll Be Losing in Compound Interest

You’re giving up a lot of the ‘magic’ of compound interest, especially if you cash out 100% of your pension fund now. In the table below is an example of the financial outcomes of three people, Chris, Thandi and Dave, who all lost their jobs and withdrew money from their pension funds.

	James	Thando	Dave
Age at retrenchment	45	45	45
Pension fund value	R1.5 million	R1.5 million	R1.5 million
Amount cashed out	R1.5 million	R100 000	R1.5 million
Tax paid on cash-out	R292 500	R0	R292 500
Amount transferred to preservation fund	R0	R1.4 million	R0
Age when new contributions to new pension fund starts	46	46	46
Monthly contribution to a new pension fund	R2 000	R2 000	R17 300
Growth rate	10% per year	10% per year	10% per year
Age at retirement	60	60	60
Total retirement savings	R728 000	R6.3 million	R6.3 million
Tax-free lump sum that can be cashed out	R0	R400 000	R0

4. If You Need the Money to Pay Debts

Investigate debt counselling or consolidation before dipping into any of your savings or investments. A debt management programme will help you create a debt repayment plan that gets you back onto a healthy financial path. Sanlam offers free debt management assistance; visit our Credit Profile page for more details.

5. Get Advice From a Qualified Friend

It’s human nature to make financial decisions that seem good now but turn out to be regrettable in future. Seek financial advice from an accredited financial planner to guide you through difficult financial times.

“It is important to ensure that you have worked through these considerations before cashing in your pension as a short-term solution as this could have dire effects on your long-term retirement plan”, concludes Govender.

^{Glacier Financial Solutions (Pty) Ltd and Sanlam Life Insurance Ltd are licensed financial services providers.}

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📌 What is NSFAS?

The National Student Financial Aid Scheme (NSFAS) is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.

NSFAS offers both bursaries and income-contingent loans:

Bursaries: For eligible students who meet academic and household income criteria (especially for TVET and university students).
Loans: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.

✅ Who Qualifies for an NSFAS Loan?

To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:

Be a South African citizen.
Be financially needy, with a household income of less than R350,000 per year.
Have a valid South African ID.
Be enrolled or accepted to study at a public university or TVET college.
Not be funded through another bursary program that covers all expenses.
Maintain satisfactory academic progress (returning students).

📚 Courses Funded by NSFAS

NSFAS primarily funds undergraduate qualifications, but certain postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB) may be considered under the NSFAS loan scheme, not bursaries.

If you’re studying:

Undergraduate degree or diploma: You are likely eligible for a full NSFAS bursary.
Postgraduate study: You may qualify for a loan, depending on the course and funding availability.

📄 Required Documents for NSFAS Application

When applying, make sure you have the following documents scanned and ready:

Certified copy of your South African ID or Smart Card.
Parent(s) or guardian(s) ID documents.
Proof of income (latest payslips, UIF, or affidavit if unemployed).
Consent Form signed by your parent(s)/guardian(s) to allow NSFAS to verify income.
Proof of registration or acceptance at a public institution.
Academic transcripts (for continuing or postgraduate students).

🖥️ How to Apply for an NSFAS Loan Online

Step-by-Step NSFAS Online Application Process (2025)

Visit the NSFAS Website

Go to: https://www.nsfas.org.za
Create an Account
- Click on “MyNSFAS” and register your profile.
- You’ll need a valid email address and South African cellphone number.
- Choose a strong password and verify your account via email or SMS.
Login and Start the Application
- After registration, log in to your MyNSFAS account.
- Click on “Apply” to begin a new application.
Fill in Your Personal Details
- Input your ID number, name, surname, and other details exactly as they appear on your ID.
- Provide household income information and living arrangements.
Upload Required Documents
- Upload all supporting documents in PDF or JPEG format.
- Each document must be clear and under the size limit specified.
Submit Your Application
- Review your application for accuracy.
- Click “Submit” and wait for a confirmation message.
Track Your Application
- Log in regularly to check your application status.
- You will be notified via SMS and email at each stage of the process.

🗓️ Important NSFAS Dates (2025)

Application Opening Date: September 1, 2025
Application Deadline: January 31, 2026
Appeals Period: February 2026 (if rejected)
Disbursement: After registration and approval

Note: Dates are subject to change; always confirm on the official NSFAS website.

💸 What Does the NSFAS Loan Cover?

NSFAS funding typically includes:

Tuition fees
Registration fees
Accommodation (if living away from home)
Meals and transport
Learning materials (e.g., textbooks)

For loans, repayment is only required once you start working and earn above a threshold (around R30,000 annually, but subject to change).

🔄 NSFAS Loan Repayment

Repayments are:

Income-contingent – you only repay when you can afford to.
Administered by DHET (Department of Higher Education and Training).
Interest-bearing, but interest rates are low and favorable.

You can also apply for a partial loan conversion to a bursary if you perform well academically.

🔁 How to Appeal a Rejected NSFAS Application

If your application is rejected, you may submit an appeal via your MyNSFAS portal:

Log into your MyNSFAS account.
Click on “Track Funding Progress”.
If rejected, click on “Submit Appeal”.
Upload any missing or corrected documents.
Provide a clear explanation or motivation.

📱 NSFAS Contact Information

Website: https://www.nsfas.org.za
Email: info@nsfas.org.za
Toll-Free Number: 08000 67327 (Monday–Friday, 8 AM–5 PM)
Twitter: @myNSFAS
Facebook: NSFAS

📝 Final Tips Before Applying

Apply early to avoid system overload near the deadline.
Use your own email and cellphone number (do not use someone else’s).
Double-check that all your documents are certified and legible.
Keep a copy of your submission confirmation for reference.

By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams—without the burden of immediate financial pressure.