Will My Pension Be Protected During Debt Review?

South Africa’s debt help systems exist in support of consumers who cannot keep up financially. Accumulating debt happens gradually, but realising that you are overindebted can feel sudden and devastating. As experts in debt review, Debtco Group can guide you towards financial stability – but what counts as debt and qualifies for debt review? And how does debt review affect your life?

It is natural to have questions, and we encourage our clients to ask us anything. One common question is, “Will my pension be protected during debt review?” The answer is yes. Your pension funds are legally safeguarded and cannot be accessed by creditors to pay off debts, thanks to the Pension Funds Act, which forms part of the law.

Why Your Pension is Protected

The purpose of pension funds is to provide financial security upon retirement. It is not there to pay off your short-term loans or help you afford your daily debt obligations. This means your pension cannot be used to settle debt, and no creditor is legally allowed to attach or claim your pension savings. At the same time, you will not be required to withdraw your pension to pay back any creditors.

Debt review does not change this. When a debt counsellor restructures your finances, we consider your affordability, existing debts, and monthly income. Debt relief is possible: claim your free proposal today and look forward to protection from creditors, instant financial relief, and a plan to overcome your debt for good.

What If You Withdraw Your Pension?

If you decide to withdraw your pension funds, it will count towards your income and may affect your affordability. In most instances, it is better not to withdraw your pension while you are under debt review. This keeps it separate from debt review, as it is not cash in your account that can be used towards repayments.

Avoid financial regret and the biggest money mistakes by keeping your pension for retirement. If you’re unsure of how to proceed, our team are here to guide you. All our debt counsellors are registered with the National Credit Regulator (NCR), with your best interests as our main priority. Here are some key signs that you need debt review – if you can relate and are ready to defeat your debts, we’re here to help you achieve that goal!

Is Debt Review for You?

If you’re struggling to afford your daily living expenses and are falling behind on debt repayments, you’re likely the ideal candidate for debt review. Don’t let the overwhelming reality of too much debt steal your quality of life and compromise your wellbeing. At Debtco Group, we provide an effective and transparent debt review service to help you get back on track with your finances.