Labour lawyer Michael Bagraim is advising South African workers to avoid withdrawing from their retirement savings unless absolutely necessary. This follows the implementation of the Two-Pot Retirement System, which was signed into law in September last year. Since then, over R57 billion has been paid out to more than 3.5 million workers.
Bagraim said the system has introduced a positive change, allowing workers limited access to their retirement funds without needing to resign from their jobs.
“The Two-Pot System has proven to be an enormous success. Many people were resigning just to access their pension funds; now they don’t have to do that,” said Bagraim.
“They can access a portion of their savings to pay off debts and, in essence, keep their job and secure their future.”
He urged workers to treat their long-term savings with care and only draw funds in genuine emergencies.
VOC News
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