This product is suited for employees that want more flexibility in their retirement funding, and investment selection. We recommend this product for smaller companies that employ professionals, or employees with an understanding of financial products. This retirement vehicle is by far the easier of the products for the employer, as it removes the cumbersome administration created through conventional pensions funds who have to have trustees, and an investment committee.
Similar to a Pension fund, the Provident fund provides the employer and the employee tax relief on their contributions. The major difference between a pension and provident fund is that the employee has the option to cash in the full value (subject to tax) when they resign or they are retrenched to preserve the capital until retirement