CHRIS AXELSON: Two-pot — what you need to know
A senior Treasury official spells out the key aspects — including the need for prudence
As of today, South Africa’s retirement landscape has been reshaped by the introduction of the two-pot retirement system. This new framework aims to address long-standing issues in retirement savings by ensuring the preservation of long-term savings and offering access to a portion of funds. This reform marks a pivotal shift in how retirement funds are structured and managed, offering both opportunities and responsibilities for fund members.
The National Treasury has been instrumental in amending various legislation to enable implementation. This legislation includes the Pension Funds Act (1956), the Post & Telecommunications-related Matters Act (1958), the Transnet Pension Fund Act (1990) and the Government Employees Pension Law (1996). The amendments were approved by parliament in May and signed into law by President Cyril Ramaphosa in July. The role of the National Treasury will be to monitor the effects of the two-pot system, communicate and make necessary amendmen...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.