Navigating retirement:
Understanding the Two-Pot retirement system
Starting on 1 September 2024, a new two-pot retirement fund system will be implemented. This will affect all members, but if you were in a provident fund and 55 or older on 1 March 2021, and have stayed in the same provident fund since then, you have special options.
Remember that your existing rights and future returns remain in place for your vested pot.
We understand that these changes can be confusing, so we're here to help you understand your choices and how they affect your retirement plans. Here’s how we can assist you:
- Access to financial advisors for personal guidance.
- Retirement seminars for expert advice as you approach and enter retirement.
- An online hub with detailed information about the two-pot system and your options.
Date: 20 November 2024
Time: 10:00 - 11:30
Date: 29 January 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 26 February 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 26 March 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 23 April 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 28 May 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 25 June 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 30 July 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Date: 27 August 2025
Time: 10:00 - 11:30
Registration will open in January 2025
Your Options:
Opting into the Two-Pot System
- You must opt-in between 1 September 2024, and 31 August 2025, if you wish to join.
- If you opt-in, future contributions will be split between a savings pot and a retirement pot.
- Your current funds remain in the vested pot.
Option 1: Don’t Opt-In
(Stay the Same)
- If you don't opt-in, nothing changes.
- No separate savings and retirement pots.
- Current rules for contributions and withdrawals remain.
- You cannot access your funds while working.
- No action is needed if you choose this option.
Option 2: Opt-In
(Two-Pot System Applies)
- A portion of your vested funds (seed capital) will move to the savings pot.
- Seed capital is 10% of your fund credit (max R30 000), calculated at 31 August 2024.
- You can withdraw from your savings pot once every tax year (minimum R2,000). Taxes and fees apply, and withdrawals reduce the cash amount available on your retirement.
Ongoing Future Contributions if you opt-in to the Two-Pot System
All new retirement savings will be split into two pots from when you opt in:
Retirement Pot
Two-thirds (67%) of new savings go here. These funds must be used for retirement income, with no lump sum withdrawals allowed.
Savings Pot
One-third (33%) of new savings go here. You can withdraw from this pot once a year while still working, with a minimum withdrawal of
R2 000.
What do you need to do?
You will need to confirm if you want to opt in to the two-pot system. What should you do? It is extremely important to get advice to help guide you based on your personal needs.
Understand the two-pot system:
Learn about the new savings and retirement pots, and how they work to your advantage.
Prepare for change:
Find out what you need to know about the upcoming retirement savings reforms which will be effective from 1 September 2024.
Learn all you need to know about the two-pot system and start planning ahead.
For a head start, explore the My Money Matters Toolkit for more information on the two-pot system and come prepared with questions.
Expert guidance:
Our panel of experts will provide valuable information on how to make the most of the two-pot system for your financial planning.
Interactive Q&A
Have your questions answered live and get clear guidance on how to navigate your retirement savings journey.