After years of workshops, implementation dates moving back and forth and endless debate about how it would work, the two-pot retirement reform implementation date is around the corner. Here's how it will work from 1 September 2024.
How many pots are there really?
If you have already started saving for retirement, you will have three pots. The money you have saved until 1 September 2024 will be your "vested" pot. The money you save from 1 September 2024 will be split between two pots - the savings pot and the retirement pot.
Read more: Everything you need to know about the two-pot retirement reform
Where can I withdraw money?
You will be able to withdraw from the savings pot once per tax year (March to March each year). On 1 September, you will not have any money in the savings pot. To address this, money will be transferred from your vested pot to your savings pot. The amount transferred will be 10% of the savings in your vested pot, capped at R30,000. The minimum amount that you can withdraw is R2,000.
Examples:
If you have R200,000 in your vested pot, R20,000 or 10% will be transferred to your savings pot.If you have less than R20,000, 10% will be less than the minimum R2,000 withdrawal so nothing will be transferred to the savings pot.If you have R2-million in your vested pot, only the maximum R30,000 will be...
