Mboweni says using government and private pensions to fund Eskom “a good idea”

3WA

Executive Member
Joined
Sep 25, 2012
Messages
8,451
I like it. A cash injection into SOEs every five years. That way we don't have to ever make them financially sustainable.
 

lucifir

Expert Member
Joined
Mar 17, 2004
Messages
3,304
Can we withdraw all our RA/pension contributions before we reach retirement age?
 

Pegasus

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Joined
May 17, 2004
Messages
3,634
I like it. A cash injection into SOEs every five years. That way we don't have to ever make them financially sustainable.
Just the first 5 years. For the 2nd 5 years there will be no pensions.
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
20,772
Can we withdraw all our RA/pension contributions before we reach retirement age?
No, 1/3rd but you can stop paying into it which is pretty much the same thing, the pool will get drained very fast with no additional investment. Remember it has to pay out pensions as well.

I could be wrong but you can also shove it from a pension to a preservation fund with no tax loss and that has far more control of where your money is.

eg: https://www.allangray.co.za/what-we-offer/transfer/#fund-1 , unit trust based preservation fund.
 

xrapidx

Honorary Master
Joined
Feb 16, 2007
Messages
37,647
Pretty much that, watch private pension industry get dissolved overnight, stupid idea. People will disinvest in droves.
I'd rather lose the tax benefit, and invest where I choose in non-retirement vehicles.
 

Rabobi

Executive Member
Joined
Dec 15, 2006
Messages
9,533
No, 1/3rd but you can stop paying into it which is pretty much the same thing, the pool will get drained very fast with no additional investment. Remember it has to pay out pensions as well.

I could be wrong but you can also shove it from a pension to a preservation fund with no tax loss and that has far more control of where your money is.

eg: https://www.allangray.co.za/what-we-offer/transfer/#fund-1 , unit trust based preservation fund.
I think people will jump all over this to move it to a preservation fund, i know i will
 

Toxxyc

Expert Member
Joined
Dec 12, 2012
Messages
3,935
I believe if you leave your job/pension company you can get it paid out in a lump sum. It is taxed to **** though.
 

lucifir

Expert Member
Joined
Mar 17, 2004
Messages
3,304
I think people will jump all over this to move it to a preservation fund, i know i will
I think a preservation fund has to still follow the retirement fund policies, so funds will still be force into SOEs.
I am hoping there is away for us to all remove all our funds from the RAs (even at a cost) which will show government that we are not going to just take this BS anymore.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
2,697
30% min but moving it to preservation is tax free.
0-25K is at 0%, 25K-660K at 18%, 660K-990K at 27% and anything above at 36%. So it's not that bad actually. If you're on a high tax bracket (41%/45%) it makes sense to max out your contributions and then cash out every time you leave a job.

I've already made back the tax I paid on lump sum payout when I left my fulltime job in 2018 simply by moving most of the funds into USD.
 

fishfly

Honorary Master
Joined
Jan 24, 2005
Messages
10,347
Yay lets use every ones pension so when they retire, they will be broke and without money to sustain themselves...
We may as well resign/retire now and die with what we have than continue to work and get nothing out thereafter
 

Zukat

Senior Member
Joined
Oct 11, 2010
Messages
962
I believe if you leave your job/pension company you can get it paid out in a lump sum. It is taxed to **** though.
Unless you get retrenched, then I believe there is a tax break on the first R500k
 

ConfusedR

Well-Known Member
Joined
Jun 27, 2015
Messages
425
It really astonishes me how the ANC are really trying hard to chase people out of the country.
Eventually, as in Zimbabwe, they will demand aid from "white" and Asian countries.

The EFF will not do any better
 
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