From Debt to Financial Freedom: Makoena’s Journey to a Debt-Free Life After Resignation

For many South African government employees, the idea of resigning from their job feels like stepping into the unknown. While retirement may seem like the safer option, resignation offers flexibility, control, and often, significant tax savings—but it also comes with its own set of fears.  

One of the most common worries I hear from my clients is lingering debt 

What happens to the debts they’ve carried for years?  

Will resignation leave them overwhelmed by financial obligations they can’t handle? 

Makoena’s story is a powerful testament to how the right financial guidance and understanding of available benefits can turn that fear into freedom.  

When Makoena first reached out to me after joining the Retire vs Resign Masterclass, she was in a tough spot. 

Her debts were piling up, her gratuity wasn’t enough to cover them, and she felt trapped.  

But through a combination of expert advice, little-known tax-free benefits, and a strategic approach, Makoena achieved what many thought was impossible—she resigned and became completely debt-free. 

In this blog, I’ll share Makoena’s inspiring journey from financial despair to freedom, and how government employees just like her can do the same by making informed decisions about resignation.  

If you’re dealing with debt and uncertain about your options, this story could be your turning point. 

The Weight of Debt: Makoena’s Struggles Before Resignation 

Like many government employees, Makoena had spent decades working hard and building a stable life for her family.  

Debt was quietly accumulating behind the scenes, overshadowing her financial security.  Debts seemed to grow no matter what she did. 

When she started considering resignation, it felt like an impossible dream. How could she even think about resigning when her financial situation felt so precarious? 

Her main concerns included: 

  • Mounting debt that seemed impossible to clear with her current income 
  • Fear of high taxes on her resignation lump sum 
  • Uncertainty about how to manage her financial future without a steady monthly pension 

She wasn’t alone in this fear. Many government employees hesitate to resign because they worry about how their financial obligations—like mortgages, loans, or outstanding bills—will be managed without a predictable monthly pension.  

But here’s where Makoena’s story takes a turn for the better. 

The Breakthrough: Accessing Hidden Tax-Free Benefits 

When Makoena joined the Retire vs Resign Masterclass, she didn’t expect the massive shift that would come from understanding her full pension benefits. It turns out, Makoena had started working before 1998, a key date in pension regulation. This meant she had access to an extra tax-free benefit that most government employees never hear about. 

This little-known benefit was a game-changer for Makoena. 

Because of this pre-1998 tax-free benefit, she didn’t have to worry about paying massive taxes on her resignation lump sum. With the right planning, Makoena was able to withdraw her 1/3 lump sum tax-free, giving her the financial boost she needed to wipe out her debts. 

Key Benefits Makoena Unlocked: 

  • Tax-Free Withdrawal: No taxes were applied to her 1/3 lump sum, allowing her to use all of it to tackle her debts. 
  • Debt Clearance: She was able to pay off credit card balances, loans, and other financial obligations entirely. 
  • Financial Reset: With her debt wiped clean, she could start fresh and build a secure future. 

Imagine that—after years of feeling like her debts were an immovable weight, Makoena was able to clear them completely and gain a fresh financial start. The fear that had once held her back from resignation turned into an opportunity for freedom. 

The Benefits of Resignation: Makoena’s Newfound Freedom 

Resignation wasn’t just about wiping out Makoena’s debts—it gave her control, flexibility, and peace of mind. Here’s what she gained by making the decision to resign: 

1. Tax Savings: Keeping More of Her Money 

One of the biggest concerns for Makoena (and many others) was the fear of paying massive taxes on her lump sum. Without the right advice, it’s easy to lose a large portion of your resignation payout to taxes. But with the help of the pre-1998 tax-free benefit, Makoena was able to access a significant portion of her savings without paying a cent in taxes. 

By working closely with me, we developed a strategy to ensure she maximized her tax-free benefits, leaving her with more money in hand to tackle her debts and secure her future. 

2. Flexibility to Control Her Finances 

Resignation gave Makoena something that retirement couldn’t—control. Instead of being tied to a monthly pension payment that might not fully meet her needs, Makoena could access a lump sum and decide how to use it. 

With the freedom of resignation, she could: 

  • Pay off all her debts in one go, freeing herself from the stress and burden of monthly repayments. 
  • Plan her finances in a way that fits her goals, rather than being limited by a fixed pension amount. 
  • Invest and grow her wealth, giving her financial security well beyond her working years. 

3. The Power to Shape Her Future 

For Makoena, the decision to resign wasn’t just about money—it was about freedom and security. After years of feeling weighed down by debt, resignation gave her a fresh start. She could now focus on building a better future for herself and her family without the constant worry of financial stress. 

In her own words:
“I don’t owe anyone anything!” 

Watch the video now to learn how Makoena wiped out her debts and finally found peace of mind—and how you can do the same with the right financial guidance. 

How You Can Achieve the Same Freedom 

If you’re like Makoena and feeling trapped by debt, I want you to know that there are options available to you. Resignation offers powerful financial advantages, but it requires the right planning and guidance to make the most of those benefits. 

Here’s why resignation may be beneficial if you’re facing debt: 

  • Tax-Free Benefits: Depending on when you started working, you may be eligible for tax-free portions of your pension, which can significantly reduce your tax burden. 
  • Debt Management: Resignation gives you the option to pay off debts immediately using your lump sum, freeing you from ongoing financial stress. 
  • Financial Flexibility: By resigning, you’ll have more control over how you access and manage your money, allowing you to shape your financial future according to your goals. 

Join the Retire vs Resign Masterclass 

Makoena’s success wasn’t a fluke—it was the result of strategic planning and expert advice.  

That’s why I created the Retire vs Resign Masterclass—to help government employees like you make informed decisions, maximize tax savings, and secure your financial future. 

If you’re ready to take control of your financial destiny, I invite you to join the Retire vs Resign Masterclass. Together, we’ll explore all your options and find the best solution for your unique situation. 

Still Worried About Debt? Watch Makoena’s Story and Discover How She Did It 

I understand that debt can feel like an overwhelming obstacle, but Makoena’s story proves that with the right approach, you can achieve financial freedom. If you’re a government employee who’s tired of carrying the burden of debt, I encourage you to watch her full testimonial. 

Watch the video now to learn how Makoena wiped out her debts and finally found peace of mind—and how you can do the same with the right financial guidance. 

Disclaimers:

The guidance on ‘Retire or Resign’ decisions provided here is independent and not issued by or on behalf of the Government Employees Pension Fund (GEPF). We do not act on behalf of the GEPF.

Retirement Wellness SA is a Trusted and Authorised Financial Services Provider – FSP 31609. This post provides information, not advice.

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