A

The two-pot retirement system will be implemented on 1 September 2024. This date has been set in legislation and will not change. While this is the official implementation date, it falls on a Sunday, which means that retirement fund administrators will only implement the new system and run their processes from Monday, 2 September 2024. Only once the new system has been implemented can applications be processed. Different administrators may take some time to implement the new system and run their new processes.

A

The two-pot system applies to:

• Pension funds – including both defined benefit and defined contribution pension funds;
• Pension preservation funds;
• Provident funds;
• Provident preservation funds;

A

The funds that will be excluded from the two-pot system are:

• Older “legacy” policies, held by an RA fund, entered into before 1 September 2024 with a death benefit and savings structure;
• Beneficiary funds that hold deceased members’ benefits to pay regular benefits typically to minor children; and
• Unclaimed benefit funds.

A

No, it won’t – not everyone necessarily wants to withdraw the money from their savings pot, so you will have to apply to your retirement fund to withdraw those funds if you want to use them. You will only be allowed to make a withdrawal once every tax year. And it’s advised that you only access those funds in the case of an emergency.