Two-pot system
Everything you need to know
Effective: 1 SEPTEMBER
2024
What do the changes mean for my retirement savings? From 1 September 2024 any amounts that you save in a retirement fund will be split into a savings pot and a retirement pot. The law talks about a ‘component’ rather than a ‘pot’, but we will still use a ‘pot’ here to make it simple.
What is the two-pot system? 1
From 1 September 2024 any new retirement savings will be split into two new pots for your retirement
2
How your two new pots work
How your new retirement savings will be split:
two-thirds (about 67%) automatically go into your retirement pot
3
retirement pot
savings pot
one-third (about 33%) automatically goes into your savings pot
You must use your retirement pot to set up a retirement income. No withdrawals allowed.
retirement pot
What happens to my retirement savings from before 1 September 2024?
Before 1 September 2024, your retirement savings are invested in one pot for your retirement.
vested pot
Your retirement savings up to 31 August 2024, and any investment growth on these savings, will not be affected by the new rules.
You can only withdraw cash from these savings if you leave your employer or retire. Rules apply.
My Money Matters Toolkit
A small amount of your savings from your vested pot will be moved to your new savings pot. This amount is 10% of your savings as at 31 August 2024 but can’t be more than R30 000. You’ll be able to withdraw the money in your savings pot once in every tax year if it’s more than R2 000. You’ll pay tax on any cash you withdraw.
To read more scan this QR code.
Alexforbes WhatsApp self-service solution : Save our number to your contacts: +27 60 043 9601
This site gives you access to explainer videos, a useful list of frequently asked questions and more.
The self-service options are available 24/7, 365 days a year
Type Help, select Register and follow the menu prompts
Scan the QR code to read more about the two-pot system. https://mymoneymatters. alexforbes.com/twopot.html
You can: request your fund balance track the status of a claim register on AF Connect or reset your password access to financial education
alexforbes.com
If you were 55 years or older and in a provident fund on 1 March 2021 and are still in the same provident fund, you can opt into the two-pot system.
There is one exception though:
We have a dedicated two-pot system information page on the My Money Matters Toolkit website.
Information on the site is updated, regularly.
savings pot
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