ABSA expects R78bn in two-pot withdrawals in first year

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A new corporate logo stands above the entrance to the Absa Group Ltd. headquarters office in Johannesburg, South Africa, on Tuesday, Aug. 7, 2018. Barclays Africa Group Ltd. has ditched the name to revert to Absa Group Ltd. as it severs ties with Barclays Plc, after the London-based company sold down the controlling stake it bought in 2005. Photographer: Waldo Swiegers/Bloomberg via Getty Images

SOUTH Africa’s largely consumer-driven economy is likely to get a financial stimulus from two-pot withdrawals, as the new pension system takes effect from September.

However, it all depends on how much is withdrawn. Big banks, asset managers and economists are expecting withdrawals from the ‘savings pot’ of pensions totalling between R50 billion and R100 billion in the first year, which many agree could provide another tonic to economic growth. – moneyweb.co.za

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