CONCERNS RAISED ABOUT TWO-POT IMPLEMENTATION DATE
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GUEST - Natasha Huggett-Henchie, a principal consultant at NMG Benefits
The Standing Committee on Finance’s rejection of National Treasury’s recommendation that the Two-Pot retirement system be delayed has left the asset management industry anxious. The committee said that the Two-Pot system will be implemented on the original date of 1 March 2024, denying National Treasury’s recommendation to delay the system’s implementation to 1 March 2025. Under the new system, South Africans will be able to access up to one-third of their retirement funds before retirement through a “savings pot.” The other funds will be locked in a “retirement fund,” which will only be accessible when the member retires.
The Standing Committee on Finance’s rejection of National Treasury’s recommendation that the Two-Pot retirement system be delayed has left the asset management industry anxious. The committee said that the Two-Pot system will be implemented on the original date of 1 March 2024, denying National Treasury’s recommendation to delay the system’s implementation to 1 March 2025. Under the new system, South Africans will be able to access up to one-third of their retirement funds before retirement through a “savings pot.” The other funds will be locked in a “retirement fund,” which will only be accessible when the member retires.
