2 minute read
30 Jul 2021
7:00 am

Early access to pension funds unwise


Drawing money out early will inevitably mean there will be less money when retirement finally rolls around.

Picture: iStock

Many times a year, financial experts will tell us about how badly indebted we are and how irresponsible we are when it comes to credit. And, our national taste for expensive toys frequently exceeds our capacity to pay for them. That is why it is so worrying that Finance Minister Tito Mboweni, strongly backed by the unions, wants to amend the law to allow workers to access their pension funds before they resign from a job, or they retire. Mboweni said workers should be able to access a percentage of their pension fund “in this time of difficulty”. On cue,...