(Getty Images/ pinkomelet)
Focused on preservation of savings, the new two-pot retirement system, set to kick off in September this year, will allow retirement fund members to safeguard money for their pension and retirement but still access funds in emergencies.
Government and trade unions have lauded the system for creating a “thirteenth cheque for workers amid harsh financial conditions”.
Retirement fund administrators, meanwhile, have anticipated billions of rands in withdrawals. According to Alexforbes, withdrawals from the pension fund industry could amount to R55 billion, while Old Mutual has predicted that more than R14 billion will be withdrawn.
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