The earliest any changes would become effective for a new withdrawal mechanism is 2022.
11 August 2021 - 14:41
The Treasury has said there is still a long way to go with the process of allowing South Africans to be able to withdraw a portion of their retirement savings. Stock photo.This after former finance minister Tito Mboweni said recently that the National Treasury was in talks to allow those who lost their income during the Covid-19 pandemic to make “limited” withdrawals from their retirement funds.
In a statement issued on Wednesday, the Treasury said members should not contact their retirement funds to withdraw money , as these funds are legally not empowered to allow pre-retirement withdrawals. “It is expected that any changes to the law would only become effective next year at the earliest, and some of the medium-term provisions may take even longer to take effect.
“The government has been engaging with trade unions, retirement funds, regulators and other stakeholders to discuss how to increase savings and improve preservation and allow limited withdrawals, without creating liquidity and investment risks,” the Treasury said.
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