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Retirement Planning
Tuesday, February 23, 2016 - 12:22
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The introduction of the compulsory annuitisation of two-thirds of provident fund savings on retirement will no longer be going ahead on 1st March 2016 according to National Treasury. This was the date a number of retirement and tax reforms would have been introduced, promising a simpler and more uniform retirement savings regime.

The proposed postponement was tabled by Finance Minister Pravin Gordhan at an urgent meeting on Monday 15th February. The Minister is expected to announce details of the postponement in his budget vote speech next Wednesday.

According to Steven Nathan, CEO of 10X Investments, the details pertaining to retirement reforms and the impact on retirement savers were never properly clarified and were misunderstood by the public. “The new laws would have in no way jeopardised the member’s right to access their existing retirement savings on 1 March 2016, and the future investment return on those savings.”

Copyright © Insurance Times and Investments® Vol:29.2 1st February, 2016
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