A major battle is in the offing between Cosatu and the retirement industry over worker access to retirement savings, with the trade union rejecting as inadequate the limited access provided in the draft legislation published by the National Treasury last week on the two-pot system of retirement provision.
In terms of the draft legislation, the amount accumulated before the promulgation of the legislation — which is envisaged to come into force in March next year — will be regarded as “vested” and will not be accessible for immediate withdrawal except on resignation. Only one-third of retirement savings accumulated in the savings pot after promulgation will be accessible. It will therefore take some time for the one-third savings pot to build up into a sizeable amount...
Definitely not! That is the very reason they are called retirement funds.