South African Pension Law Reform Allows Early Withdrawal

South African lawmakers have approved a bill reforming the country’s pension laws, enabling members to withdraw up to a third of their savings before retirement. The Pension Funds Amendment Bill, effective from September, mandates the division of funds into three components - savings, retirement, and a vested portion. Additionally, it permits members to transfer or withdraw savings if they change or lose their job. The new system also offers the flexibility for fund members to choose their participation. These changes mark a significant shift in pension regulations, providing individuals with more control over their savings.