![Many wooden pots with patterns in turquoise blue, cream, brown and black.](https://sls-fresco.momentum.co.za/files/images/corporate/two-pot-retirement-system/corporate-two-pot-retirement-system-large.jpg)
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).
What is the two pot retirement system?
![Illustration of 3 clay pots with patterns showing vested component, 1/3 savings component and 2/3 retirement component.](https://sls-fresco.momentum.co.za/files/images/corporate/two-pot-retirement-system/two-pot-retirement-system-momentum-corporate.png)
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:
![Black family of three with the little boy on his father’s shoulders and the mother looking at them smiling.](https://sls-fresco.momentum.co.za/files/images/corporate/two-pot-retirement-system/corporate-family-of-three-two-pot-retirement-system-large.jpg)
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.