Tito Mboweni SA economy to recover in 2023 riots

Photo: GCIS / Flickr

Economic relief: Tito Mboweni to give workers access to retirement funds

Mboweni said that he is pushing to allow workers to gain access to a portion of their retirement funds to mitigate financial distress.

Tito Mboweni SA economy to recover in 2023 riots

Photo: GCIS / Flickr

During a briefing to the media on Wednesday 28 July, Finance Minister Tito Mboweni announced that he is committed to implementing a scheme whereby worker will be able to access a portion of their retirement funds to help them through the financial difficulty resulting from the COVID-19 pandemic and recent riots and looting. 

Mboweni unpacked the economic support package announced by President Cyril Ramaphosa on Sunday, saying that National Treasury has allocated over R27 billion for the payment of the R350 social relief of distress (SRD) grant and is working hard to implement extra measures to assist the country’s most vulnerable people.

Mboweni demands fast tracking of retirement fund strategy  

During his virtual briefing, Mboweni said that he is pushing to implement a mechanism through which workers can access some of their retirement funds, but said that somewhere along the line, his strategy has become stuck in administrative purgatory. 

“The matter which seems to be stuck somewhere in the system, a matter which has to do with making an allowance for workers to have access to a percentage of their retirement funds in this time of difficulty,” he said. 

“It is a matter which has been discussed at length, and I am determined now more than ever before to ensure that officials at the National Treasury and other relevant bodies speed up this matter,” he pledged. 

‘Use funds responsibly’  

Mboweni said that when the opportunity to access retirement funds becomes available, those who choose to use the money must do so responsibly and only as a solution to urgent financial distress. 

“A portion of the retirement fund, workers should be able to access, in order to maybe pay off bond repayments, or sort out whatever debt positions they may be in – but I must warn them at the same time that people must ensure that they use this facility for purposes of relief and making their own situations better,” he said.