Early withdrawals spell trouble
By Thabiso Thakali
Cash-strapped South Africans are making unprecedented premature withdrawals of their provident and pension funds in a battle to service debts.The country's overall current debt is R1 139-billion compared to the R297-billion of 10 years ago.
While it may seem like a quick fix to get you out of your immediate debt problems, a provident or pension fund should be a long term accumulator of capital to protect you in your retirement. Plan for your retirement, rather consolidate your debt, or seek debt management, than raid your savings.