Consumers desperate to access retirement savings as economy tanks, says Alexander Forbes
Employees take the cash rather than transfer it to preservation vehicles on resigning and retiring
The stagnant economy is forcing more employees to dip into retirement savings as job losses and declining disposable income bite consumers hard, SA’s largest pension fund administrator, Alexander Forbes, said on Monday.
“When resigning, employees are opting to take the cash as opposed to transferring it to preservation vehicles, and the same applies to when they retire. It’s really a function of the economy — people are losing their jobs, and sometimes switching jobs just to gain access to their retirement savings,” Alexander Forbes CEO Dawie de Villiers said...