Rising pension cash-outs worry insurers

Since October 2022, amendments to the Act have provided for enhanced withdrawals at retirement, raising the commutable or cash payout of the pension at retirement, from one-third to 50% of accrued savings.

In a briefing on the group’s financial results recently, BIHL CEO, Catherine Lesetedi, revealed that seven out of 10 pensioners are opting to liquidate the portion of their retirement benefits that the law allows, instead of saving them for the continuous monthly payments called annuities.