The Citizen reports that on 1 September, nearly half f South Africans who are members of pension funds want to withdraw funds under the new two-pot retirement system.

Research from Worth, a company that drives financial behavioural change, shows that 48% of working consumers will or are considering withdrawing from their new savings pot on 1 September, with the majority citing this as an opportunity to repay or reduce debt and loans (51%) or cover everyday expenses (43%). Of these consumers planning to withdraw, 68% do not have up to R10,000 saved in an emergency fund. In addition, 54% of those withdrawing indicated that they planned to do it every year and a further 15% said they would if they needed the cash. Worryingly, more than half of these consumers have also considered resigning before the two-pot retirement system kicks in to access all of their retirement funds prematurely. The research also indicated that 42% of employers or HR teams have not provided any support, information or education around the two-pot retirement system. Hayley Parry, money coach and head of education at Worth, says the research shows that employees contributing towards some form of retirement product are largely under-educated around retirement as a concept and sadly, many will be withdrawing only out of necessity.

• Read the full original of the report in the above regard by Ina Opperman at The Citizen

Get other news reports at the SA Labour News home page