Faizel Patel, Radio Islam News – 25-07-2019
An economist has told Radio Islam the planned prescribed assets policy which gives politicians control of pension funds is an African National Congress (ANC) policy which was part of the party’s election manifesto.
Mike Schussler has warned that the ANC wants to use South Africans pension money to fund bankrupt state-owned enterprises including Eskom and SAA.
Schussler says the planned prescribed assets policy will give politicians control of where this money is invested.
He says the move may put a further burden on pensioners as their pensions may be much less than they expected.
“All that money is available to invest here, but if your investment manager cannot not just invest where they need to, to keep you in comfort, then yes, you will end up maybe earning only 4% instead of 4.5%. Ultimately you get poorer by two, three percent a year and with our lives being longer these days, that just takes away more of your money.”
Schussler says prescribed assets is a very dangerous thing for people, and the younger generation do not always realise it.
Listen to the interview with Mike Schussler
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