Image courtesy of Sanlam.
Two-Pot Retirement System – Implementation Date 1st September 2024
With the implementation of the new Two Pot Retirement System recently signed into law by President Ramaphosa scheduled for launch on 1st September 2024, there is a great deal of uncertainty how these changes will impact current and future retirement scheme members. What follows is a selection of articles that should help shed light on the changes, the aims of the new system and impact to the members across the various fund types.
We hope that you will find these articles informative as we are all entering into a changing legislative landscape which will no doubt have a few teething problems whilst the finer details are worked out.
As always, the team at Hansmeyer & Associates are available to assist with any queries and concerns you may have regarding your retirement planning. Just give us a call, we’re here to help you.
Saving for retirement in South Africa
South Africa is changing its pension laws. The new system is designed to give individuals the opportunity to access only a portion of their retirement funds before they retire in the case of dire need – or even in case of desire. To an extent, this makes sense, given the low savings rate in the country. Read the full Moneyweb.co.za article here>
Two-pot retirement system
From 1 September 2024, your retirement savings will be split into a vested, savings and retirement component. The vested component will be made up of your retirement savings on 31 August 2024. You’ll have access to a cash portion (savings component) while preserving the rest for retirement (retirement component). Refer to the attached infographic from Momentum Corporate for further clarification.
Simplifying the two-pot system
The two-pot retirement system–what to expect on 1 September 2024
With the new two-pot retirement system taking effect in six weeks, members of retirement funds should ensure that they understand the implications of the system, according to Adri Messerschmidt, senior policy advisor at the Association for Savings and Investment South Africa (ASISA). Read the full ASISA Media release here>
National Treasury: Two-Pot Retirement System FAQ’s (updated August 2024)
The National Treasury of South Africa have put together a very informative FAQ’s publication explaining the new system for retirement fund members. Please take some time to read through the information in the publication. You can read it here>