THE TWO POT SYSTEM
The Two-Pot System marks a significant change to South Africa's retirement landscape. It's designed to provide you with a safety net in times of financial crisis while encouraging long-term savings.
All your future contributions to your retirement fund will be split into two pots: a savings pot and a retirement pot. Your current retirement savings until 31 August 2024 will remain preserved in a vested pot.
RETIRMENT POT
VESTED POT
-
Your retirement savings up until 31 August 2024.
-
On 1 September 2024, 10% of your retirement savings, up to a maximum of R30 000, will be transferred to the savings pot.
-
Should you decide not to take the full amount in your savings pot the balance will still be protected until you retire or you can access all your savings when you change employers.
-
No further contributions can be made to your vested component from 1 September 2024.
SAVINGS POT
-
One-third of your retirement contributions from 1 September 2024 will go into your Savings Pot.
-
You can withdraw from this Savings Pot once every tax year.
-
The minimum withdrawal amount is R2 000, which will be taxed at your marginal income tax rate.
-
There is no maximum limit to the amount you can withdraw.
-
There will be an administration fee any withdrawal you make.
