Tag: Pensions Fund Act (PFA)

The National Budget was characterised by the balance between social welfare expenditure and fiscal sustainability amid a disappointing outlook for GDP growth in South Africa. The estimate for GDP growth for 2021 was reduced from 5.1% to 4.8% and forecasted to grow at 1.8% p.a. over the next three years.

With all the uncertainty in the South African market and concerns about future investment returns, many investors are looking offshore for investment opportunities. A diversified investment portfolio is always a good strategy when saving for retirement but before you set off looking for greener pastures in offshore markets, take note of Regulation 28 and its integration in retirement annuity funds.

Statistics indicate that only about 6% of South Africans are able to meet their retirement income objectives and retire comfortably. Compounding this issue is that 97% of South Africans elect to withdraw their retirement fund savings in cash when they resign or are retrenched.