Understanding the Two-Pot Retirement System
The Two-Pot Retirement System is a new way for South Africans to save for retirement. It gives people more control over their money and lets them take out some of their savings before they retire. The system starts in March 2024.
The Two-Pot System has a number of benefits, including:
- More flexibility: People can withdraw money from the Savings Pot when they need it, such as for an emergency or to buy a house.
- More control: People can choose how much to invest in each pot and how to allocate their withdrawals.
- Better tax benefits: The Non-Vested Pot grows tax-free until retirement.
People with the Two-Pot System can divide their savings into two pots: the Savings Pot and the Non-Vested Pot. They can only take money out of the Savings Pot. There are rules about how much and how often they can take money out.
Two pot retirement system calculator q
People can learn more about the Two-Pot System from the government, industry publications, and financial advisors. They can also use online calculators to estimate how much they can take out of their Savings Pot.
If you are a member of the Government Employees’ Pension Fund (GEPF), there are some special rules for you. You should talk to GEPF to learn more about how the Two-Pot System will affect you.
The Two-Pot Retirement System is a new and important change for South African retirement savers. By understanding the system and its benefits, people can make the most of it and secure a financially sound retirement future.
