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Treasury opposed to Pension Funds Act changes allowing members access to loans Treasury was taking part in public hearings on the Pension Funds Amendment Bill which is aimed at giving people who find themselves in dire financial straits a chance to access their pension savings to ease their distress without first having to quit their jobs. Treasury Deputy Director-General Ismail Momoniat. Picture: @TreasuryRSA/Twitter
20 hours ago
CAPE TOWN - National Treasury said that it was opposed to changing the Pension Funds Act to allow members to access a portion of their savings before retirement as a guarantee for a loan.
Treasury was taking part in public hearings on the Pension Funds Amendment Bill which is aimed at giving people who find themselves in dire financial straits a chance to access their pension savings to ease their distress without first having to quit their jobs.
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app instead?
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.