An explainer on the retirement legislation to help you make informed decisions once it comes into effect.
The two-pot retirement system comes into effect three and a half years after changes to the provident fund legislation were made on 1 March 2021. Attempting to wrap one’s head around all these retirement reforms can prove quite the challenge.
There appear to be numerous misunderstandings regarding the two-pot retirement system and, in some cases, fears that are based on these misunderstandings.
The two-pot retirement system should have a very positive impact on retirement savings in South Africa, and it aims to achieve this without infringing on anyone’s rights. It is perhaps precisely for this reason that the legislation is so complicated — because it will preserve peoples’ rights that existed before the two-pot retirement system comes into effect.
In this video, I have attempted to focus on the most frequently asked questions we have received from our clients. I hope this video helps provide clarity on the two-pot retirement system and assists and guides you in making informed decisions once it comes into effect.