LISTEN: Debt Rescue SA urge South Africans not to touch their Pension Funds before retirement

The two-pot retirement system has officially taken effect.

Both the Pension Funds Amendment Act and Revenue Law Amendment Act provide for pension fund members to access a portion of their funds before retirement.

The legislation creates a savings pot for a third of the funds, while the other two-thirds will be kept in the second pot for retirement.

Neil Roets from Debt Rescue SA says South Africans do not understand and appreciate the consequences associated with the two-pot system.