ATM wants two pot system reconsidered
The African Transformation Movement has called on the government to reconsider its decision on the maximum withdrawal from the two-pot retirement system.
The ATM believes the R30 000 cap is not sufficient for already cash-strapped workers.
The Two Pot Retirement System will see South Africans getting an option to access a portion of their pension funds before they retire, while the rest of the money is locked until retirement.
The party's Zama Ntshona speaks ahead of its implementation on Sunday.
"The current limit is insufficient to alleviate their financial burdens and could instead exacerbate their dire situations. The intention behind the Two-Pot System was to provide workers with access to their funds during emergencies.
"However, the reality is that withdrawing even a portion of their pension savings will push many into a deeper debt spiral, primarily due to the hidden taxes and administrative fees associated with such withdrawals. Workers may find themselves facing substantial tax liabilities not only from the withdrawal itself but also from potential increases in their taxable income brackets."
