Two pot retirement system
From 1 September 2024, your retirement savings will be split into a vested, savings, and retirement component. The vested component will be made up of your retirement savings on 31 August 2024. You’ll have access to a cash portion (savings component) while preserving the rest for retirement (retirement component).
Our simplified guide explains plainly what the two pot retirement system is.
Savings component calculator
When the two-pot retirement system comes into legislation on 1 September 2024, you can withdraw from your savings pot in case of emergencies. However, it's usually better to keep this money invested - if you don’t withdraw, you’ll have more savings by the time you retire than if you do.
Use our savings component calculator to see how your savings could grow if you keep them invested. It will help you understand the potential benefits of leaving your money invested.
What is the two pot retirement system?
From the proposed date of implementation on 1 September 2024, the two-pot system will change the future of retirement planning in South Africa.
Here's what you need to know:
Why is the two-pot retirement system important
- The two-pot system can help you save more for retirement, protect your retirement savings, and make better retirement planning decisions.
- The savings component gives you access to some of your retirement savings in an emergency. This can help you avoid dipping into your retirement savings too early, which can reduce the amount of money you have available when you retire.
- The retirement component is locked away until you retire. This helps protect your retirement savings from being accessed too early or lost due to financial hardship.