SA-TIED Research on retirement reform and tax policy features in Business Times

Business Times recently featured findings from an SA-TIED Working Paper. The article highlights several insights, including the risks of reduced lifetime savings due to early withdrawals under South Africa’s newly introduced two-pot retirement system. It also examines how tax policy reforms, such as the introduction of tax credits, could promote equity in retirement savings.

Using SA-TIED’s PITMOD tax microsimulation model, the research explores scenarios where tax credits replace traditional deductions, demonstrating their potential to reduce inequality across income groups. The article also discusses how these reforms could generate additional revenue to bolster social support systems, such as increasing old-age grant allocations, while maintaining fiscal sustainability.

Read the full article here.