SPONSORED | It may seem counterintuitive to make it easier for the public to access their retirement savings, but it may have a positive impact in the long run, says OldMutualSA expert.
. This annual survey tracks the shifts in attitudes and behaviours of working metropolitan South African households to better understand their savings behaviour and financial perspectives on key financial topics.
According to OMSIM, reaction to the proposed pension reform is mixed, with most appreciating the improved access to savings. Only 12% showed a negative response to the proposed changes. The likelihood of taking advantage of increased access is high, even though many of those surveyed may be aware of the detrimental effects of early withdrawal from their retirement “pot”.Adequate retirement savings continue to elude most South Africans.
Once the two-pot system comes into effect, South Africans will not have to go to these extremes if faced with an emergency. They can start or continue to save for retirement, knowing they have access to a portion of their retirement savings if needed.“With retirement savings already so low, it’s vital that people keep their long-term financial goals in mind.