FirstRand Group CEO Mary Vilakazi says the proceeds from the two-pot system are not necessarily going toward consumption and debt repayments, with some South Africans taking the opportunity to invest offshore.
“I have heard from an asset manager a concern that advisers are advising professionals to draw down on this money and take savings to use for their offshore savings. It is not so obvious that the money goes into consumption and paying off debt, which has been part of the debate. I think people might see an opportunity in paying the tax early and going to save somewhere else,” she told Business Times after the release of the group's financial results for the year ended June. ..
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