Government’s proposed retirement reforms, including those relating to preservation of savings, are aimed at ensuring that pension fund members are better protected and can retire comfortably.

We have noted public concerns that are fuelled by rumours that Government will take away people’s hard-earned pensions and prevent them from accessing their funds. These rumours are based on a misunderstanding of Government’s proposals. We would like to assure citizens that Government has no intention to nationalise people’s pension/provident funds or prevent them from accessing their money.

Instead, Government is proposing important measures to lower charges on the pension funds of workers, to ensure that they maximise their pensions. Government wants to encourage workers to keep their savings until they retire and to convert some of their retirement savings into income at retirement. Currently, only an estimated 6 per cent of South Africans are able to maintain their lifestyle and replace their income fully at retirement.

These proposals have not been put into law. National Treasury is currently consulting widely on these proposals through several fora, including with labour unions, industry and engagements with the general public. It will take government at least two years before the proposals are made into law.

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