Watch out for that loan offer from a retirement investment

Watch out for that loan offer from a retirement investment

A personal member’s Bill proposed by Democratic Alliance MP Dion George would amend the Pension Fund Act to allow investment holders to obtain a portion of these retirement investment before they retire as a warranty for a financial loan.

But specialists within the industry state the proposal could spell doom for investment holders whom elect to obtain the funds, simply because they shall be asked to save money settling your debt in the place of saving for your retirement.

The Act permits investment holders to utilize a percentage of the cost savings as an assurance for a financial loan, however it is limited to loans pertaining to property that is immovable.

Within an explanatory memorandum, George said the proposed amendment would relieve limitations allowing users to gain access to around 75per cent of these funds to alleviate monetary strain “during the crisis or every other crisis similar”. Continue reading “Watch out for that loan offer from a retirement investment”