Zuko Komisa

Kaya Biz recently spoke to Dumo Mbethe, CEO of Momentum Corporate who shared some of the insight on claims from the group. Mbethe, shared that as of the 26th of September, there had been 143 000 two-pot withdrawal applications with a cumulative amount of 2.2 billion rands.
“This is an illustration of the financial stresses that many in South Africa are facing. The two pot system was in a sense aimed at addressing financial emergencies, where people can use part of their retirement savings to adress real financial pressure.”
“Withdrawing simply because the money is there”
“In terms of what we have seen, there are instances where people are withdrawing to deal with real financial emergencies, but what we have seen there are also people who want to withdraw because the money is there. This is where we start getting concerned as people are starting to compromise their ability to retire comfortably.” said Mbethe,
Mbethe shared that of the withdrawals 40-to-49-year age group makes up almost 40% of applications.
“These are individuals who are nearing retirement, that may seem distant, but if you are 49 years old, that leaves you with about 11 years before your retirement date. So whatever you are withdrawing today, there will be no sufficient time to make up for it.”
Listen to the full conversation here:
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