Retirement funds trustee newsletter 2024
This year’s newsletter is about the two-pot retirement system, which encourages pre-retirement preservation and prevents members from accessing their retirement fund benefits when they leave employment. The new system also gives most retirement fund members access to a part of their retirement fund benefits in case of emergencies or financial hardship.
Remember, even though you can withdraw money from your savings component, you don’t have to. It is always best not to withdraw anything from your retirement fund so that you can retire more comfortably.
Keep your savings component invested
When the two-pot retirement system starts, you can withdraw from your savings pot for emergencies, but it's best to keep it invested. Those who don't withdraw will have more savings at retirement than those who do. Withdrawals are also taxed higher before retirement.
Two-pot retirement system FAQs
From 1 September the new 2-pot system lets you access the savings component of your retirement savings for emergencies. Future contributions split: 1/3 to savings (withdraw once a year) and 2/3 to retirement. Withdrawals are taxed and reduce your retirement funds. Consult a financial adviser before withdrawing.
How two-pot withdrawals will work
From 1 September the new 2-pot system lets you access the savings component of your retirement savings for emergencies. Withdrawals are taxed at your income rate and can be done once per tax year. If not used, funds grow with interest. Ensure you have a tax number and consult a financial adviser for details.
Choosing your beneficiaries is important
Update your retirement fund beneficiaries, especially after major life changes. Nominate only natural persons. Provide full names, birth dates, relationships, contact details, and percentage allocations. Connect with your financial adviser for personalised retirement planning advice.
In case you missed it
Find all our previous newsletters under one, easy-to-find space, for your convenience.
