Two-pot retirement system

On 1 September 2024 the two-pot retirement system comes into operation


Effectively, your retirement savings will comprise of three pots, the vested pot, savings pot and the retirement pot.

Latest Two-pot News Articles

Withdrawing from your savings pot

Important information regarding withdrawing from your savings pot.

Seed capital – starting balance in savings pot

On 1 September 2024, 10% or R30 000 (whichever is lower) from your retirement savings in the fund as at 31 August 2024...

Revenue Laws Amendment Bill 2023 and Revenue Laws Amendment Bill 2024

The Revenue Laws Amendment Bill 2023 (RLAB 2023) is a significant piece of legislation that introduces the two-pot...

Two-pot Retirement System: Change in Implementation Date

As discussed in previous communications, the key proposals to move towards the two-pot retirement system, was first...

Update: Two-pot retirement system summary

In this communication, we provide a summary on the progress of the Two-pot retirement system, from when the key...

Simeka Update: The two-pot retirement system progress

More information about the draft legislation in the pipeline that introduces the two-pot retirement system. Read...

All three pots

make up your

retirement savings

The first pot will contain your current savings. Your future contributions to your retirement fund will be split into the other two pots. This means, your retirement pot is kept until retirement, the other pots are accessible before retirement, while also allowing you to gain limited access to your future savings pot for emergencies while you are still employed.

The vested pot

– Current savings

The value of your retirement savings accumulated up to 31 August 2024

The money in the vested pot will be dealt with as before implementation

You will be able to access it when changing jobs

However, you will no longer be able to contribute to this pot, unless:

  • you were a member of a provident fund;
  • you were 55 years or older on 1 March 2021;
  • you are still contributing to the same provident fund as at March 2021, and
  • you did not elect to contribute into the two-pot retirement system.

The savings pot

– Seed amount and future savings

10% Of the value in your vested pot accumulated up to 31 August 2024 will be your opening balance

This opening balance is known as the seed capital, but may not be more than R30 000.

rd From 1 September 2024 one-third of your retirement contributions will go to the savings pot

You do not have to withdraw from your savings pot if you do not need the money. What you do not withdraw from your savings pot during your membership will form part of your retirement lump sum when you retire.

You can withdraw from the savings pot, for emergencies, once in every tax year

You will be able to submit a withdrawal instruction for this seed capital to be paid to you if it is more than R2 000

An administration cost to process the withdrawal will also be deducted

Seed capital amount will be taxed at your normal tax rate before it is paid to you

The retirement pot

– Future savings

rds From 1 September 2024 two-thirds of your contributions will go to the retirement pot

You will not have access to the retirement pot when changing jobs or during emergencies.

You will gain access to the retirement pot when you reach the age of retirement

You may only receive the money in the retirement pot as a monthly pension when you retire