We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

The Actuarial Society of SA (Assa) says the “two-bucket” pension system proposed by the Treasury, which would see pension savings split into one pot that must be preserved until retirement and another that can be accessed in emergencies, will boost long-term savings.

Actuarial modelling by Assa’s retirement matters committee shows that a two-bucket system that allows savers to allocate a percentage of their monthly retirement savings to a pot that is accessible in emergencies, would discourage them from cashing out all their savings when changing jobs. That would result in significantly higher monthly income when people retire, as the other bucket earmarked for long-term preservation would continue to benefit from the power of compounding...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.