The two-pot retirement system will come into effect on 1 September 2024.
Your existing retirement holdings
Leading up to 31 August 2024 will be divided into two pots
The intention of the Two-Pot System is to encourage the preservation of retirement savings while providing the flexibility to withdraw a portion during emergencies. This approach balances the need for long-term financial security with the practicality of immediate financial needs.
Existing retirement savings will be allocated to the vested pot. Existing retirement fund rules apply to the vested portion. 10% of retirement savings accumulated before 1 September 2024 (up to a limit of R30 000) will be taken from the vested pot and allocated to the savings pot as a starting value (seeding). The remaining balance will be allocated to the Vested pot.
SAVINGS POT:
One third of contributions made from 1 September 2024, together with the seeded amount, will be allocated to the savings pot. Funds in this pot canbe accessed in an emergency.
RETIREMENT POT:
Two thirds of contributions made from 1 September 2024, will be allocated to the retirement pot and preserved until retirement.
If you aren't exempt from the Two-Pot System in terms of the law, this contribution split is mandatory and will be automatically implemented.
How to make a withdrawal from your savings pot
Over time, your retirement investment earns interest or returns. When those earnings are kept invested, they start to earn interest or returns themselves, leading to compounded growth of your retirement investment. Keeping money invested rather than withdrawing it is crucial for maximising the benefits of compounding, to achieve higher long-term returns and protect against inflation.
Once we receive your withdrawal request, here is what you can expect
Benefits of the two-pot system
Useful Tip
Saving for retirement is crucial and when you withdraw money out of retirement savings, it slows down the growth of your investment.
See below some scenarios to consider before making a withdrawal.
The impact of a withdrawal
Meet Julia
Julia is a 45-year-old nurse living in Johannesburg when the Two-Pot System is introduced. She has been diligently contributing towards a pension fund through her employer.
Julia has been planning for her retirement for years, knowing that she'll need a substantial nest egg to support herself when she stops working.
We encourage you to carefully consider your options and seek advice from an accredited financial advisor before making a withdrawal.
To help you further understand the Two-Pot Retirement System we have compiled a series of Frequently asked Questions.
The two-pot retirement system will come into effect on 1 September 2024.
Your existing retirement holdings
Leading up to 31 August 2024 will be divided into two pots
The intention of the Two-Pot System is to encourage the preservation of retirement savings while providing the flexibility to withdraw a portion during emergencies. This approach balances the need for long-term financial security with the practicality of immediate financial needs.
Existing retirement savings will be allocated to the vested pot. Existing retirement fund rules apply to the vested portion. 10% of retirement savings accumulated before 1 September 2024 (up to a limit of R30 000) will be taken from the vested pot and allocated to the savings pot as a starting value (seeding). The remaining balance will be allocated to the Vested pot.
SAVINGS POT:
One third of contributions made from 1 September 2024, together with the seeded amount, will be allocated to the savings pot. Funds in this pot canbe accessed in an emergency.
RETIREMENT POT:
Two thirds of contributions made from 1 September 2024, will be allocated to the retirement pot and preserved until retirement.
If you aren't exempt from the Two-Pot System in terms of the law, this contribution split is mandatory and will be automatically implemented.
How to make a withdrawal from your savings pot
Over time, your retirement investment earns interest or returns. When those earnings are kept invested, they start to earn interest or returns themselves, leading to compounded growth of your retirement investment. Keeping money invested rather than withdrawing it is crucial for maximising the benefits of compounding, to achieve higher long-term returns and protect against inflation.
Once we receive your withdrawal request, here is what you can expect
Benefits of the two-pot system
Useful Tip
Saving for retirement is crucial and when you withdraw money out of retirement savings, it slows down the growth of your investment.
See below some scenarios to consider before making a withdrawal.
The impact of a withdrawal
Meet Julia
Julia is a 45-year-old nurse living in Johannesburg when the Two-Pot System is introduced. She has been diligently contributing towards a pension fund through her employer.
Julia has been planning for her retirement for years, knowing that she'll need a substantial nest egg to support herself when she stops working.
We encourage you to carefully consider your options and seek advice from an accredited financial advisor before making a withdrawal.
To help you further understand the Two-Pot Retirement System we have compiled a series of Frequently asked Questions.
The two-pot retirement system will come into effect on 1 September 2024.
Your existing retirement holdings
Leading up to 31 August 2024 will be divided into two pots
The intention of the Two-Pot System is to encourage the preservation of retirement savings while providing the flexibility to withdraw a portion during emergencies. This approach balances the need for long-term financial security with the practicality of immediate financial needs.
Existing retirement savings will be allocated to the vested pot. Existing retirement fund rules apply to the vested portion. 10% of retirement savings accumulated before 1 September 2024 (up to a limit of R30 000) will be taken from the vested pot and allocated to the savings pot as a starting value (seeding). The remaining balance will be allocated to the Vested pot.
SAVINGS POT:
One third of contributions made from 1 September 2024, together with the seeded amount, will be allocated to the savings pot. Funds in this pot canbe accessed in an emergency.
RETIREMENT POT:
Two thirds of contributions made from 1 September 2024, will be allocated to the retirement pot and preserved until retirement.
If you aren't exempt from the Two-Pot System in terms of the law, this contribution split is mandatory and will be automatically implemented.
How to make a withdrawal from your savings pot
Over time, your retirement investment earns interest or returns. When those earnings are kept invested, they start to earn interest or returns themselves, leading to compounded growth of your retirement investment. Keeping money invested rather than withdrawing it is crucial for maximising the benefits of compounding, to achieve higher long-term returns and protect against inflation.
Once we receive your withdrawal request, here is what you can expect
Benefits of the two-pot system
Useful Tip
Saving for retirement is crucial and when you withdraw money out of retirement savings, it slows down the growth of your investment.
See below some scenarios to consider before making a withdrawal.
The impact of a withdrawal
Meet Julia
Julia is a 45-year-old nurse living in Johannesburg when the Two-Pot System is introduced. She has been diligently contributing towards a pension fund through her employer.
Julia has been planning for her retirement for years, knowing that she'll need a substantial nest egg to support herself when she stops working.
We encourage you to carefully consider your options and seek advice from an accredited financial advisor before making a withdrawal.
To help you further understand the Two-Pot Retirement System we have compiled a series of Frequently asked Questions.
