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Is lending from our retirement savings a good idea?
South Africans are drowning in debt and it is hard to imagine that more debt is the solution to the structural economic issues we face.
14 May 2021 15:20
Image: Shutterstock
The Pension Funds Amendment Bill aims to provide members of retirement funds the ability to use their retirement savings as security for a loan. The bill proposes that members be allowed to borrow up to 75% of their fund values, using their retirement savings as a guarantee of repayment. Current pension fund legislation only allows for retirement fund benefits to be applied for home loans.