Campaign aims to protect investments, pensions

2019-03-27 06:00

The South African Institute of Race Relations (SAIRR), a research and policy orga­nisation, has launched the #Protectpensions campaign for members of the public to secure their investments and pensions.

The SAIRR created this platform for South Africans to write to financial and investment advisers to understand the risks to their pension.

seek explanations on how serious the risk to their pension is.

The initiative was apparently sparked by an indication in the ANC’s election manifesto that prescribed assets – where pension funds and other investors are mandated to invest in certain sectors or companies – will be investigated as a source of funding for economic and social development.

The institute is of the strong view that such a move could enable the ruling party to use the pensions of ordinary South Africans to fund entities such as Eskom.

According to the IRR’s findings, the South African government is running out of money and the ratio of government debt to gross domestic product is higher than it has been at any time in the country’s history.

The debt of state-owned enterprises is continuously rising, with no end in sight.

Marius Roodt, head of the IRR’s campaigns, warns that debt levels will continue to rise without reform within the government.

“The threat to the savings of ordinary South Africans is real and increasingly imminent.”

Given the current ideological bend of the government and the ANC, reform sufficient to change the country’s stagnant economic fortunes is highly unlikely.

Furthermore, raising taxes is also an unlikely prospect, as taxpayers are already being squeezed for much of their income.

“There is not much room left to extract more,” Roodt said.

“Short of going to the International Monetary Fund, which is also politically unpalatable, there is only one other option – the pensions of ordinary hard-working South Africans.”

Mike Schussler, an economist who has worked closely with the IRR on investment and pension matters, indicates that South African pension assets are very large, ranking eighth highest in the world.

At least a third of the country’s adults have or are investing in a pension.

  • South Africans can write to financial and investment advisers by sending them a letteron www.irr.org.za.
NEXT ON NEWS24X

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.