Personal finance expert warns people against cashing retirement funds

Struggling South Africans are cashing in their retirement funds to cope with their debts, according to research.

University of South Africa researcher on personal finance, Professor Bernadene De Clercq, says people must not use their retirement savings, rather try find ways of getting extra income.

First of all there can be high tax implications. There can be tax that they are now paying that might make their take home far less. The unintended consequences of tax must not be underestimated.

Professor Bernadene De Clercq, Unisa researcher on personal finance

Secondly, we all know compound interest, if you can leave it there long enough, it might grow to something more substantially.

Professor Bernadene De Clercq, Unisa researcher on personal finance

Listen to the audio below for more information...

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