THE BUY SIDE
STEPHEN CRANSTON: Two-pot system makes sense for SA in the Global South
For years there was debate about whether to allow members to withdraw from their pension funds in emergencies
12 September 2024 - 05:00
Compulsory preservation has been up for debate throughout the 25 years that I have been covering the employee benefits industry, and it is finally here.
The two-pot retirement system is a compromise. In many jurisdictions, retirement capital can’t be accessed until at least age 55. Pension funds are certainly not designed as vehicles for emergency savings. But such a rigid rule is a developed country’s luxury, and we live in the Global South, even if SA qualifies at least as a middle-income country. ..
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.