Retirement industry patiently awaits word from govt on two-pot system | The Citizen

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“The two-pot retirement system was mentioned during the BudgetSpeech last month, but this was very brief and there was not much indication into how or when the legislation around it would be implemented.” Read more about the matter here 👇

South Africa will be the first country to pilot the two-pot retirement system. But when exactly this will happen is a mystery to everyone outside of government.Corporate, even asset-management and insurance companies were as in the dark as the man on the street on the legislation that will outline when and how the new system will be rolled out.

“This will include details on the amount that could be immediately available when the system is implemented from 1 March 2024. Any withdrawals from the accessible “savings pot” would be taxed as income in the year of withdrawal.”Mbethe said that as such, they have not made any major progress in preparing for it. But he says that Momentum does predict that there will likely be an influx of persons wanting to make a withdrawal given the struggles people are facing in the current economic climate.

Like Mbethe, Acton estimated that the new level of accessibility will lead to a 300-400% increase in claims to be processed by administrators.

 

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