Retirement

The Building Industry Bargaining Council clarifies the ins and outs of the looming legislation and what it will mean for employers and workers.

The FIRE movement, which stands for “financial independence, retire early”, is a programme of extreme savings and investments that allows people to retire far earlier than a traditional pension plan would permit. JustMoney.co.za, which helps South Africans make good money choices, examines whether this goal is attainable.

Many South Africans spend their entire working lives contributing to a pension fund which they can benefit from once they stop working. However, some individuals may die before they get to enjoy their pension fund.

Many people look forward to retirement and the prospect of living out their golden years comfortably. However, studies found that the majority of South Africans will not have enough money saved up to retire comfortably.

Many people spend years preparing for when they will no longer work. However, retirement is a long way away for many people and unforeseen circumstances could result in them urgently needing money.

It may be very difficult for some to save money in the current economic climate as they barely have enough money to cover their monthly expenses. However, it's crucial to plan for the time when you may not be able to work.

The law is clear about how pension pay-outs are handled, and the circumstances that can prevent them.

South Africa’s government workers contribute money to the Government Employees Pension Fund (GEPF). The GEPF has more than 1,2 million members and around 473 312 pensioners and beneficiaries. It is estimated that it has a combined assets worth R2.09 trillion.

South Africans are waiting in anticipation for Finance Minister Enoch Godongwana to deliver his maiden Medium Term Budget Policy Statement (MTBPS).

People spend a lot of time thinking about how they’ll cope financially once they retire. This includes investing a portion of their income in pension funds and investments to secure their financial futures for when they are no longer able to work.

The National Treasury has provided more information around a proposal that would allow members to draw a portion of their retirement pension funds early in the case of emergency or extraordinary circumstances.

After announcing that South Africans will be able to withdraw their retirement funds, the National Treasury has left many wondering just how soon this will happen.