The two-pot retirement scheme is expected to be introduced in September this year. (Getty Images)
Retirement fund managers are appealing to Congress to swiftly introduce legislation such as the Pension Fund Amendment Bill (PFAB) and the Revenue Law Amendment Bill (RLAB) in order to introduce the two-pot system as planned in September this year. .
The new two-pot system means that while South Africans will be able to cash out a third of their future retirement savings over their career, two-thirds will only be available in retirement. A third component is called the 'savings pot' and the remaining two thirds is called the 'retirement pot'.
The South African Savings and Investment Association (Asisa) and the Institute for Retirement Funds in Africa (IRFA) said there were “significant timing concerns” about whether the bill would be promulgated in time as it still required several amendments. . This includes amending provisions to allow access to retirement benefits through divorce orders.
South Africans need to gain knowledge if we want to build a prosperous future. News24 has been keeping the nation informed for 25 years and we are entering a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news designed to inform, empower and inspire.