Mboweni pushing for major retirement change in South Africa
Finance minister Tito Mboweni wants a key regulatory change that will allow South Africans to access their retirement funds early.
The finance minister said in a media briefing on Wednesday (28 July), that the change will be made with the proviso that workers use any funds in a responsible manner.
He said that workers should be able to access a portion of their retirement funds during ‘difficult times’ – whether it be for a bond repayment or to pay off debt.
“A portion of their retirement funds, workers should be able to access, to finish off bond repayment whatever debt they are in … I must warn that it must be used for purposes of relief and making better their own situation.”
“The matter – which seems to be stuck somewhere in the system – has to do with making allowance for workers to have access to a percentage of their retirement funds times of difficulty,” the minister said.
However, Mboweni also cautioned that people must ensure that they use this facility for purposes of relief and improving their financial situation.
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