EDITORIAL: The use of pension fund money as security for loans opens a can of worms
A legislative proposal to make this possible has the wellbeing of the poor in mind, but is misguided
Pensions are sacrosanct in providing security for one’s retirement years and should not be tampered with lightly. So careful consideration needs to be given to a legislative proposal by DA MP Dion George to allow members of pension funds to use their pensions as security for loans. It touches on a sensitive topic that is sure to arouse considerable debate.
The proposal in the form of a private member’s bill is well-intentioned and comes at a time when many are suffering financial distress as a result of the Covid-19 pandemic that has thrown many people out of work. They may well question the rationale for having an asset they cannot access and may even go to the desperate length of resigning from their jobs to get their hands on it. Many probably have done so already...
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