President Jacob Zuma has just signed major retirement reforms.
The Money Show’s Bruce Whitfield interviewed Michael Prinsloo, Head of Best Practice in the Research and Product Development Division at Alexander Forbes.
Prinsloo discussed what the retirement reforms entail.
Scroll down for quotes from the audio below.
This unifies the tax deductibility across all pension fund arrangement.— Michael Prinsloo, Alexander Forbes
Tax deductibility is now 27.5% instead of 15% previously.— Michael Prinsloo, Alexander Forbes
All members of funds will now have to buy an annuity with at least a portion upon retirement.— Michael Prinsloo, Alexander Forbes
The ideal is to preserve your retirement savings when you change jobs. However, 90% of people who change jobs don’t do this.— Michael Prinsloo, Alexander Forbes
Costs have been reducing and will probably improve further in future.— Michael Prinsloo, Alexander Forbes