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<\/a><\/figure>\n\n\n\nIn September 2024, Alexforbes implemented a two-pot retirement fund system. <\/p>\n\n\n\n
“If you were in a provident fund and 55 or older on 1 March 2021, and have stayed in the same provident fund since then, you have special options,” the group said.<\/p>\n\n\n\n
The group provided assistance with understanding the change through the following options:<\/p>\n\n\n\n
- \n
- Access to financial advisors for personal guidance.<\/li>\n\n\n\n
- Retirement seminars for expert advice as you approach and enter retirement.<\/li>\n\n\n\n
- An online hub with detailed information about the two-pot system and your options.<\/li>\n<\/ul>\n\n\n\n
South African members had a year to join the two-pot system, between September 2024 and September 2025.<\/p>\n\n\n\n
If a person chose to opt in to the system, future contributions would be divided between a savings pot and a retirement pot, with current funds remaining in the vested pot.<\/p>\n\n\n\n
The two options were recorded as follows by Alexforbes:<\/p>\n\n\n\n
Option 1: Don\u2019t Opt-In<\/strong>
(Stay the Same)<\/p>\n\n\n\n- \n
- If you don’t opt in, nothing changes.<\/li>\n<\/ul>\n\n\n\n
Option 2: Opt-In<\/strong>
(Two-Pot System Applies)<\/p>\n\n\n\n- \n
- A portion of your vested funds (seed capital) will move to the savings pot.<\/li>\n\n\n\n
- Seed capital is 10% of your fund credit (max R30 000), calculated at 31 August 2024.<\/li>\n\n\n\n
- You can withdraw from your savings pot once every tax year (minimum R2,000). Taxes and fees apply, and withdrawals reduce the cash amount available on your retirement.<\/li>\n<\/ul>\n\n\n\n
If a person opted in to the two-pot system, two-thirds (67%) of new savings would go to the retirement pot, while one-third (33%) of new savings would go to the savings pot.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
JSE-listed financial services group Alexforbes recently announced that it has processed and paid more than one million savings pot withdrawal claims since 2024 when the two-pot retirement system was introduced in South Africa.<\/p>\n","protected":false},"author":127,"featured_media":855863,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[16778,25131],"class_list":["post-855733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-alexforbes","tag-savings-pots"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/855733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=855733"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/855733\/revisions"}],"predecessor-version":[{"id":855871,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/855733\/revisions\/855871"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/855863"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=855733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=855733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=855733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- If you don’t opt in, nothing changes.<\/li>\n<\/ul>\n\n\n\n