WHAT ARE
THE TWO POTS?
The government is changing retirement fund rules to make sure
your money is preserved until your retirement. But you’ll have an
opportunity to access some of it in an emergency before you retire.
WHY DO WE NEED THE SYSTEM AND HOW WILL IT WORK?
From 1 September 2024, contributions to retirement funds will be split between two
pots. One-third will go into a Savings Pot and two-thirds will go to a Retirement Pot.
YOUR RETIREMENT SAVINGS
VESTED POT RETIREMENT POT SAVINGS POT
Your existing retirement From 1 September 2024 From 1 September
savings accumulated up two-thirds of future 2024 one-third of
to 1 September 2024 will contributions will go future contributions
be allocated to the Vested into the Retirement Pot. will go into the
Pot and will be subject Savings Pot.
to the existing rules. No
The funds in your As at 1 September 2024,
further premiums will be Retirement Pot are not 10% of your existing
invested into this pot. accessible until your retirement savings (capped
at R30,000) will be
retirement.
transferred into your Savings
If you are part of an The Retirement Pot will Pot as an opening balance.
occupational fund, then be used to provide your
the current access rules income at retirement. You can withdraw cash from your
on withdrawal will still Savings Pot once per tax year.
apply to this amount.
If you withdraw from your
Savings Pot you will pay a
transaction fee as well as tax
based on your marginal tax rate.
Minimum withdrawal
For more information on the new is R2 000.
Two-Pot Retirement System, visit our Don’t be tempted to withdraw
website to learn more, or speak to your
from your Savings Pot as
this will reduce your money
financial adviser.
available at retirement.
What you don’t spend from
your Savings Pot will be
available as a lump sum when
you retire.
-P
Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.
