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Struggling? You may soon be able to cash in part of your retirement savings

3 August 2021 4:51 PM
Tags:
Financial planning
Retirement
John Maytham
Personal finance
investing
Pension
making ends meet
Afternoon Drive with John Maytham

John Maytham interviews personal finance journalist Maya Fischer French.
  • National Treasury is considering giving people access to a portion of their retirement funds before they retire

  • Personal finance journalist Maya Fischer French says South Africans are desperately in debt, this may be a lifeline

  • She fears that many people dipping into retirement savings to pay their debt will just get into debt later, but with less in retirement savings


© michaeljayfoto/123rf.com

RELATED: You may have to cash in your retirement savings – but read this first


Treasury is considering allowing people to withdraw a portion of their retirement savings under specific conditions before retirement.

Finance Minister Tito Mboweni said that he was determined to ensure that officials at Treasury fast-tracked the process to ensure that workers could access portions of their retirement funds.

“If we don't watch it, there'll be a rush to the door, and will create liquidity problems, and that's why what we've said it firstly is going to be a very limited window of access under very specific circumstances,” said National Treasury Deputy Director-General Ismail Momoniat.

John Maytham interviewed personal finance journalist Maya Fischer French (scroll up to listen).

... What is the number? Is it going to be a percentage? …

Maya Fischer French, personal finance journalist

If you’ve lost your job, you can access your pension… Private pensions you can’t access before 55…

Maya Fischer French, personal finance journalist

Is it going to be taxable? … The cynic in me says this is a great tax windfall… Unions say it has got to be tax free…

Maya Fischer French, personal finance journalist

National Treasury is saying maybe early next year…

Maya Fischer French, personal finance journalist

I’m extremely concerned. I have people writing to me saying that they want to take their own lives, they’re so desperate… They are up to their eyeballs in debt…

Maya Fischer French, personal finance journalist

… 90% of people who will pull money out of their pension to settle their debt will be in the same position in five years’ time… Unless we fix this dependency on debt, we’re not really solving this issue…

Maya Fischer French, personal finance journalist



3 August 2021 4:51 PM
Tags:
Financial planning
Retirement
John Maytham
Personal finance
investing
Pension
making ends meet
Afternoon Drive with John Maytham

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