retirementEngineering News reports that Efficient Group chief economist Dawie Roodt maintains that the promises of politicians are always greater than the South African taxpayer’s capacity to deliver.  

Faced with high debt levels, high social spending (redirected from capital spending), little room to increase taxes significantly as South Africa has too few rich people, and several inefficient, bankrupt State-owned enterprises, Roodt fears government may target pension funds as its next source of funding.  “What is the next pot of gold?  My suspicion is the next pot of gold will be pension funds.  Make sure you have a good financial adviser,” he warns.  Investigating a number of economic factors, such as income distribution, number of dependants and life expectancy, Roodt has worked to determine the financial wellbeing of the different racial groups in South Africa, and his findings are summarised in this report.

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