The once-off retirement withdrawals in March 2024 will incur administration costs and taxes. But Old Mutual says many low-income earners are prepared to pay that price.
Parliament’s Standing Committee on Finance has pushed back against a recommendation from National Treasury that the implementation of the so-called two-pot retirement system be delayed until 2025, calling instead for it to be rolled out in March 2024.
The two-pot system would allow people to access a third of their pension savings before retirement.
MPs appealed to Finance Minister Enoch Gondongwana on Tuesday, asking for the earlier date to be implemented.
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