Nene shows support for retirement reforms
Minister of Finance Nhlanhla Nene has defended the retirement reforms that the ANC has decided to implement despite fierce opposition from Cosatu.
The trade union believes the plan to introduce a compulsory annunciation of two thirds of provident fund savings on retirement will deny workers access to their savings.
Fear that workers will not be able to get their hands on their savings after retirement has increased the resignation rate significantly as indebted workers get their money out before March.
Speaking in parliament during a debate on the Taxation Laws Amendment Bill, Nene said that the reforms would help protect pensioners against old-age poverty.
National Treasury is expected to go on a countrywide communication campaign to explain the benefits, especially the fact that pensioners will be able to get tax deductions on their retirement fund contributions for the first time next March.
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