National Assembly gives two-pot retirement system final stamp of approval

CAPE TOWN - The two-pot retirement system received its final stamp of approval from the National Assembly on Thursday after considering technical amendments made by the National Council of Provinces (NCOP). 
 
In practice, the Pension Funds Amendment Bill will allow workers to make annual withdrawals from the savings portion of their retirement funds. 
 
But while there’s been blanket support from political parties for the pension reform, some are warning of the dire consequences this could have for many in their twilight years.

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Introduced by the finance minister when he tabled the national budget in February, the Pension Funds Amendment Bill is intended to give relief to many cash-strapped citizens buckling under the pressure of the high cost of living. 
 
Now employees won't have to resign their jobs to get their hands on their retirement savings.
 
The NCOP has also made amendments to protect retirement savings from divorce and maintenance orders.
 
But opposition parties blame government's slow economic growth for putting workers in this position. 
 
The Inkatha Freedom Party (IFP)'s Liezl van der Merwe: "For the government to seek to advance into law legislation that gives people the opportunity to access these funds ahead of retirement, may seem noble in its intentions, but in the long run, it might yield disastrous outcomes."
 
Al Jama-ah's Ganief Hendricks said that these amendments would do more harm.
 
"These amendments are going to harm people when they reach the age of 60, and they’ve drawn from their pension fund."
 
The bill will now be sent to the president for assent, in preparation for it to come into effect by 1 September.