GOOD Speech by Brett Herron,
GOOD Secretary-General & Member of Parliament
20 February 2024
Note to editor: This is the speech that was delivered by GOOD Secretary-General and Member of Parliament, Brett Herron, during today’s debate on the Revenue Law Amendment Bill.
The amendments proposed to South Africa’s rigid retirement fund regime are sensible and timeous.
They are sensible because it is non-sensical that South Africans, with skills and experience, in the labour force, resign from their employment in order to access a portion of their retirement funds in times of financial distress.
It is timeous because South Africa is in an economic growth crisis, with high costs of living and high interest rates, which is causing severe financial distress.
Just yesterday the Altron FinTech Household Resilience Index (AFHRI) was released showing that South African households remain under severe financial pressure, mainly as a result of the restrictive monetary policy stance by the South African Reserve Bank (SARB).
The worst performing indicator was the ratio between household disposable income and household debt costs.
The new two-pot retirement savings regime will bring some flexibility and relief to South Africans who have contributed to a private or employer retirement scheme and who at times find themselves needing access to some of their own retirement savings.
The new regime continues to prioritise the need for retirement savings to be protected, with the restrictions on access to the savings component of the two-pots, but demonstrates a reasonable understanding of the unintended consequences of the extremely rigid current regime.
We support the Revenue Laws Amendment Bill.
Media Enquiries:
Brett Herron, GOOD Secretary-General & Member of Parliament
Cell: 082 518 3264
Email: bretth@forgood.org.za
Janke Tolmay, GOOD Media Manager
Cell: 073 367 1223
Email: janke@forgood.org.za