Two-pot: Who's cashing out? Middle-income earners drive R35bn withdrawals.
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GUEST – Zareena Camroodien – Departmental Head: Fund Governance and Trustee Conduct (FSCA)
Of the nearly 2 million withdrawals made from retirement funds, three-quarters were made by members aged 31 to 51, with over 40% of withdrawals from members in their 30s.
Less than 15% of withdrawals came from members over 50, which suggests that these members are more concerned about their retirement outcomes.
These figures, provided by the Financial Sector Conduct Authority (FSCA), are unsurprising, as most people in their 30s and 40s are experiencing financial strain. This age group will be raising families, paying mortgages, and often supporting elderly parents. They may also feel that, given their current economic pressures, including educating children, these expenses are a greater priority than retirement at this stage.
Over 65% of withdrawals were made by members with pensionable salaries of between R60 000 and R240 000 a year. One in four people who withdrew earned between R15 000 and R20 000 a month, with a similar number falling in the income category of R5 000 to R10 000 a month.
Of the nearly 2 million withdrawals made from retirement funds, three-quarters were made by members aged 31 to 51, with over 40% of withdrawals from members in their 30s.
Less than 15% of withdrawals came from members over 50, which suggests that these members are more concerned about their retirement outcomes.
These figures, provided by the Financial Sector Conduct Authority (FSCA), are unsurprising, as most people in their 30s and 40s are experiencing financial strain. This age group will be raising families, paying mortgages, and often supporting elderly parents. They may also feel that, given their current economic pressures, including educating children, these expenses are a greater priority than retirement at this stage.
Over 65% of withdrawals were made by members with pensionable salaries of between R60 000 and R240 000 a year. One in four people who withdrew earned between R15 000 and R20 000 a month, with a similar number falling in the income category of R5 000 to R10 000 a month.