Cyril Ramaphosa says unions support prescribed assets – here’s what that could mean for your retirement savings

Prawnapple

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Ramaphosa said South Africa's financial resources have been depleted and additional funding is required, but assured MPs that the state will pursue policies in the interest of all South Africans.

The state is struggling with a growing debt problem, which now accounts for close to 60% of the country’s GDP.

"Prescribed assets" is just a way of saying that percentage of your retirement savings will have to be invested in bonds issued by the South African government and state-owned enterprises like Eskom.

Petri Redelinghuys, a trader and the founder of Herenya Capital Advisors, says prescribed assets will take a “small haircut” off the retirement savings of someone currently working. This means their retirement savings will be worth slightly less. Those still saving towards retirement may be able to recover before they stop working, he says.
 

Urist

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Here's a map of the world showing free market economies vs sh!thole countries.
703861
"Prescribed assets" iS exAcTlY WhAt wE nEeD.....
 

Urist

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If the unions support it then just take the pensions of people who belong to those unions. They won't support it for much longer when members start leaving.
The unions are communist, of course they'll love "prescribed assets", apart from "racist" solidarity of course.
 

access

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whyyy? will only retirement saving over a certain amount be used?

or what have the unions been promised, not that i think most of them give a flying pomp about their members anyway.
 

Surv0

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If this actually does happen... total F***up. If one honestly believes that the SA government will be responsible with this money, time to get a brain scan. Country is going backwards, prescribed assets would be used to slow down the fall, not lift the country from debt. There is only one way this sh1tshow would go...
 

maumau

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Pensions and provident funds? Everyone or only government? Help me please I'm confused.
 

Milano

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whyyy? will only retirement saving over a certain amount be used?

or what have the unions been promised, not that i think most of them give a flying pomp about their members anyway.
In terms of SOE's the unions have been promised that their members may keep the tens of thousands of excessive unnecessary positions that were unjustifiably created to appease them.

Simply an extension of corruption.
 

access

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Unions also support keeping wasteful expenditure up in Soe's by keeping useless staff , they are not a means of saying this is what reasonable people want.
oh right of course, duh. keeping the soe running with retirement funds mean the employees keep working and paying their union fees
 

Splinter

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If say, this actually does come into law, depending on the percentage prescribed, it may actually be worthwhile to resign to pull your savings out first
 

NarrowBandFtw

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Unions ... aka socialist groups that jizz their pants at the very idea of getting their grubby paws on other people's money ... support a retarded idea that'll grant them access to ... other people's money?!?

Well fahk me sideways squirrel ... I would never have guessed!
 

Milano

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Pensions and provident funds? Everyone or only government? Help me please I'm confused.
Ramaphosa is still testing the waters (as any good chef does when preparing frogs legs) by not committing yet but eagerly broadcasting that the unions are on board (which of course they would be). This is supposed to achieve warding off an IMF bailout (which of course it won't) but that does tell us it will be a broad and as 'lootfull' as possible.

Some more here:
 
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