Two-pot system for retirement funds
Effective: 1 SEPTEMBER
2024
Dear member 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.
retirement pot
savings pot
An online hub with detailed information about the two-pot system and your options.
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.
Alexander Forbes Financial Services (Pty) Ltd is an authorised financial services provider (FSP 1177 and registration number 1969/018487/07), an approved retirement fund administrator (24/472) and an accredited Council for Medical Schemes organisation (ORG468).
alexforbes.com
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.