SowetanLive reports that thousands of workers cashed in R42-billion of their pensions over the last year. This was revealed by pension fund administrators Alexander Forbes in its annual results for the year ended March 2016.
Also highlighted were the negative consequences of companies retrenching workers. According to Forbes’ Deon Viljoen, statistics from their business division, Investment Solutions, showed ongoing monthly contributions were worth R27-billion, while outflows were worth R42-billion per annum. “These are not client losses. These are clients who are paying ongoing benefit payments for withdrawals, retrenchments and retirement or resignation where people do not preserve,” he indicated. He said the 46% of the outflows were preserved in the funds that were administered by Forbes. Derrick Msibi, MD of Investment Solutions, said: “Most people don’t realise that large corporates in SA are on a major efficiency drive, which involves looking at head count and there is a general reduction around large corporates in terms of overall people they hire.”
- Read this report by Mpho Sibanyoni in full at SowetanLive
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