- May 18, 2015
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.
Cyril Ramaphosa says unions support prescribed assets – here’s what that could mean for your retirement savings
Less than a week after the ANC’s economic policy head Enoch Godongwana said the ANC is investigating the use of prescribed assets for pension funds, Ramaphosa told Parliament SA needs a national conversation about the policy.