SA’s pension pot at risk as government seeks funding
The pension pot in South Africa, one of the largest in the world, could be under threat as government, whose debt is growing every year, looks for new funding sources.
This according to the Institute of Race Relations (IRR), which warned of a threat by government to stipulate what the pension funds of about 16 million South Africans should be invested in.
In its election manifesto, the ANC said it would investigate the introduction of prescribed assets on financial institutions’ funds to unlock resources for investments in social and economic development.
The IRR said this meant pension fund managers could be forced by law to invest in certain sectors prescribed by the government.
The IRR said government had been spending more money than it received for more than a decade.
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