Important info on South Africa’s two-pot pension system
All you need to know about the changed to South Africa’s two-pot pension system that’s been proposed for 2024 and beyond.
There have been changes to South Africa’s two-pot pension system that’s been proposed for implementation in 2024. As we head into a difficult time of year for the aged and elderly in the country, any information on South Africa’s two-pot pension should be of utmost interest for forward planning.
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According to Business Tech, government has changed the proposed implementation date of South Africa’s two-pot pension system. Here’s that latest …
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SOUTH AFRICA’S TWO-POT PENSION SYSTEM
For those of you who are unaware what South Africa’s two-pot pension entails. Essentially, government wants one-third of all retirement savings to be place in a savings pot. This will be accessible before retirement if someone is in financial need.
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This leaves two-thirds of the pension fund to be placed into a retirement fund, which can only be accessible at retirement age. The reason for this is to provide emergency access to monies if needs be, while preserving the rest of the funds for retirement.
DATE CHANGE IN 2024
South Africa’s two-pot pension was set to start on 1 March 2024. However, after the uproar over the tight deadline by asset managers across the country, National Treasury recommended the new system only take effect one-year later on 1 March 2025.
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However, as things stand now, the Standing Committee on Finance voted that the system would still go live as planned on the original date of 1 March 2024. Finance Minister Enoch Godongwana suggested by letter that the implementation date be moved to 1 September 2024 as a compromise.
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The minister added that SARS, FSCA, GEPF and Government Pensions Administration Agency could only have their systems ready by September 2024. The ANC, DA and EFF supported the minister’s recommendation of moving the implementation date to 1 September 2024.
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