Two-pot’s hidden effect: members are staying in retirement funds
While billions have been withdrawn through the two-pot system, Alexforbes says more members are remaining connected to retirement funds long after leaving their employers.
#compulsorypreservation
Members need advice to navigate two-pot’s complex options
The two-pot system demands members make choices for vested, savings, and retirement components – all with distinct rules and tax implications. This complexity is driving the need for personalised advice and the systemic changes to support members effectively.
Advisers should not underestimate the implications of the two-pot system for financial planning
Financial advisers should understand the broader implications on tax planning, retirement savings, and investment strategies to guide their clients effectively.
