BADGER
MICHAEL AVERY: Two-pot system is a start to addressing retirement issues
The two-pot system kicks off on Monday in earnest. I’m sure many funds will be ready for the deluge of members — hardworking South Africans who have been subject to hard times thanks to successive ANC governments’ spectacular mismanagement of the economy and a global inflationary crisis — looking for some respite from the hard knocks. Some funds won’t. Especially, I’m told, the security industry fund.
Some of the windfall will go to conspicuous consumption. Some will go to paying down debt to escape the crushing usurious vice of the mashonisas. Much of that is short-term noise. The long-term impact of this overdue reform of our retirement system is arguably as big, if not bigger, than the shift from defined benefit to defined contribution funds. Let me explain...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.