Your retirement money saved up until 31 August 2024:
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Your saved money will stay in your “vested component”.
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On implementation, we allocate 10%, up to a maximum of R30 000, of this vested component to your “savings component”.
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This “seed capital” will be the opening balance in your savings component.
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You can withdraw from the savings component once a year between 1 March and the end of February. The withdrawal amount must be more than R2 000, but there is no limit – you can withdraw 100% of your savings component.
From 1 September 2024, all your contributions to the retirement fund will be split in 2:
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1/3 will go to your savings component, which you can access once a year, as stated above.
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2/3 will go to your retirement component, which you may not use until retirement.
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At retirement, you can take the total balance in your savings component as a lump sum. You must use your retirement component to purchase a monthly income.
For instance, if you contribute R1 200 a month to a retirement annuity fund, R400 goes to the savings component, and R800 goes to the retirement component. You can withdraw from the savings component once a year if the amount is at least R2 000.
