
The tax implications of withdrawing from retirement funds before retirement in SA.
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Lukho Mkwedi Phuthi wraps the show with Blessing Ndabula, diving into the tax implications of withdrawing from retirement funds before retirement in South Africa. They break down how early withdrawals—especially under the Two-Pot system—are taxed at your marginal income rate, often higher than retirement lump sum rates, potentially eroding future growth. Key risks include immediate tax hits via SARS directives, plus lost compound interest that could jeopardize long-term security. Practical advice: Prioritize needs over wants; explore alternatives like emergency funds first. Tune in for savvy strategies to safeguard your nest egg!

