Minister of Finance Trevor Manuel took aim on Tuesday at excessive fees charged by insurance companies administering retirement funds.
Responding to a debate on his recently delivered Medium Term Budget Policy Statement in the National Assembly, Manuel said while the taxation of pension funds remains “an ongoing concern”, this is also true for fees charged.
Noting that the National Assembly finance portfolio committee will be holding a hearing on the retirement industry on Wednesday morning, Manuel said the matter of fees charged by insurance companies will be “an important subject”.
“I think we should not lose sight of the horrendous fees taken by the institutions from people who find … that they have less than they paid into the funds. We have got to deal with these issues [taxation and fees] together.” — I-Net Bridge