Government could be coming after your pension - IRR warns

Government could be coming after your pension - IRR warns

With government debt increasing, some are concerned that pension funds could be risk.

The Institute of Race Relations has warned that government may attempt to interfere in determining how pension funds should be invested.

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This stems from government's worsening financial situation and its inability to successfully bring in more funds through raising taxes.

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According to the Institute, South Africa's pension funds - which in total form one of the largest asset pools in the world - could be seen by a government as a way to fill their own coffers, according to the Sunday Times.

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Economist, Mike Schussler, however, has expressed doubt that this move would address government's economic problems even if it were implemented.

In his view, a better solution would be to sell failing parastatals, cut government wage bills and to encourage investment which creates jobs.

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