As millions of South Africans gear-up to tap into their retirement savings under the new two-pot retirement system which kicks in on September 1, the South African Federation of Trade Unions (Saftu) says the scheme is a raw deal for workers.
IOL reported on Thursday that new data suggests that South Africans are less interested in drawing from their retirement savings through the two-pot retirement system.
It is less than two weeks to go before many South Africans can take advantage of the two-pot retirement system, but it seems that the idea has become less desirable as initially thought.
In an interview with broadcaster Newzroom Afrika , general secretary of Saftu, Zwelinzima Vavi said the scheme is actually a scam.
Saftu maintains a view, and the final analysis in particular when you look at the rules applying to this (two-pot system) about how much you can access of your retirement funds the 10 percent kept at R30,000. We have taken a view that this is a scam. This is a statement to mislead workers. This is government typically giving on one hand and taking on one hand, said Vavi.
