Why you shouldn't cash out when changing jobs

Cape Town - The decision to access retirement savings early to ease current financial strain has a huge impact on future finances, one that retirement members often fail to take into account or are simply not informed about.

According to Andrew Davison, head of investment consulting at Old Mutual Corporate Consultants, consumers could be tempted to dip into retirement savings ahead of time. This comes as households are forced to tighten their belts, with the country sinking into a recession for the first time in eight years and awaiting further downgrades by rating agencies.

However, the impact on retirement savings in the long run could be devastating.