South Africa’s largely consumer-driven economy is likely to get a financial stimulus from two-pot withdrawals, as the new pension system takes effect from
South Africa’s largely consumer-driven economy is likely to get a financial stimulus from two-pot withdrawals, as the new pension system... September. However, it all depends on how much is withdrawn.
Speaking at a media roundtable event on Wednesday, Absa Corporate and Investment Banking’s senior economist Miyelani Maluleke said the bank is forecasting R44 billion in early withdrawals linked to the two-pot system from September to the end of this year, and another R34 billion by August 2025 .Maluleke expects the taxman to get between R8 billion and R10 billion in taxes from the estimated R44 billion in withdrawals in the first four months of the new system .
“There are different estimates of the amount that could be withdrawn, ranging from R20 billion to R100 billion over 2024-25. We are assuming a relatively conservative withdrawal of R50 billion, which would equate to a R40 billion after-tax boost to consumers’ disposable income ,” he added.
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