GEPF and other public sector funds ‘will be part of the two-pot system’
How accessibility and seeding will impact members of defined-benefit retirement funds.
Retirement Savings
Two pots: fund members must understand the implications of withdrawals
Money in the savings pot should be withdrawn only as a last resort, for absolute financial emergencies.
Preservation should be the top priority in the messaging about two pots
Administrators are concerned there is not enough time for financial advisers and members to understand the implications of the changes.
Financial advisers can help keep the lid on clients’ retirement-savings pots
One of the first steps when advising clients on the pending two-pot changes is to get a clear view of their overall retirement-funding portfolio.
Two pots will add complexity to the tax treatment of retirement benefit withdrawals
Withdrawals from the savings and retirement pots will be taxed in different ways.
Contributing 15% of earnings to retirement savings will not be enough
According to the Oxford dictionary, a “rule of thumb” is “a broadly accurate guide or principle, based on practice rather than theory”. For many years, the retirement rule of thumb advised citizens diligently […]
How to make the best use of a tax-free savings account
With the end of the tax year fast approaching, investors who haven’t already done so should be considering making use of their R36 000 annual contribution to a tax-free savings account (TFSA). Jaco van […]
Treasury unveils proposals for two-pot retirement system
National Treasury has published a discussion paper, for public comment, on the two-pot system for retirement savings, which will allow for limited pre-retirement withdrawals, and on mandatory retirement savings for all employed and […]
Two pots: many complex issues still have to be finalised
A number of complex issues on how the proposed “two pots” retirement system will work in practice still have to be clarified, and fund members who are expecting immediate access to their savings […]
Two pots: many complex issues still have to be finalised
A number of complex issues on how the proposed “two pots” retirement system will work in practice still have to be clarified, and fund members who are expecting immediate access to their savings […]
ASISA welcomes meaningful changes to the current retirement system
In a media release, the Association for Savings and Investment South Africa (ASISA) and its members expressed support for meaningful changes to the current retirement system that are aimed at strengthening preservation of […]
Impact of lower salary increases on retirement savings
“When you consider that most South Africans retire without sufficient savings, a lack of decent increases will exacerbate the problem,” according to Twané Wessels, Product Actuary at retirement income specialist, Just. Salary increases […]
Rebuilding the retirement savings – Employers play huge role
Last year, at the height of the pandemic, many businesses were forced to make remuneration cuts to salaries of employees, with the first casualty often having been occupational retirement savings vehicles. This resulted […]
