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Some workers belong to pension funds connected to their employer, where the employer pays a monthly contribution into the fund. This may provide much-needed comfort and financial security, knowing that you will retire comfortably because your pension savings, which you have accrued during your years of service, will sustain you.
But what happens when things do not turn out the way you planned, and you suddenly realise that you may not be set up for a happy retirement because your employer has been making deductions from your salary but not paying over the contributions to the fund administrators? This is the harsh reality for many workers in South Africa.
But even with this protection, it’s best to avoid finding yourself in such a messy situation that could take years to finalise, if at all.
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* This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.
Date added: 20 October 2022
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