Old Mutual sees rise in retirement savings preservation under two-pot system
The system appears to be changing member behaviour at exit from employment, even as most eligible members continue to make withdrawals.
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Budget’s retirement threshold changes in effect despite legislative omission
IRFA also sets out how exit withdrawals now work when a member resigns and has already withdrawn from the savings component in the tax year.
Two-pot reform does not unlock vested RA benefits – Tribunal
The system introduced limited access to savings components, but it did not change the longstanding withdrawal restrictions applicable to RAs.
Two-pot amendments resolve uncertainty for older provident fund members
The Revenue Laws Amendment Act settles the treatment of provident and provident preservation fund members aged 55 or older on T-day.
Three years that matter: emigration and access to retirement funds
The three-year countdown starts only when SARS formally recognises you as a non-resident – a difference of months can affect access and tax outcomes.
Adjudicator’s rulings highlight ongoing confusion over two-pot withdrawals
The retirement funds correctly refused multiple savings component withdrawals and early access to vested benefits.
Tribunal: A fund’s rules control savings component withdrawals
The fund would be acting ultra vires if it paid a savings withdrawal while the member’s and employer’s contributions remained unpaid.
Treasury favours conditional access to retirement pot for retrenched workers
It is also open to discussions on letting members transfer all their vested savings into their retirement and savings components.
Three-quarters of withdrawals in the new tax year are repeat claims
Many fund members are tapping into their savings components as soon as the tax window opens, data from the Actuarial Society indicates.
Member’s withdrawal bid denied as two-pot rules exclude legacy RAs
The Pension Funds Adjudicator rules the fund acted within the law when it refused a member’s request to dip into his FlexiPension plan.
Groceries, gadgets and gaps: where two-pot savings are really going
Sanlam reports that most withdrawals came from financially strained members in mid-life, with little evidence that funds were used to reduce debt. Instead, spending patterns suggest pressure to cover everyday expenses.
Retirement pot withdrawals could undermine long-term savings
Danie van Zyl of Sanlam Corporate Investments warns that allowing access to retirement components in retrenchment cases might jeopardise long-term savings and place added pressure on trustees.
Alexforbes reports R7 billion in two-pot system withdrawals
It says 47% of members intend to make future claims – with 34% of those who have already claimed planning to do so again.
How to maximise your tax benefits in a two-pot era
Carla Rossouw, head of tax at Allan Gray, discusses what investors need to know about retirement fund products and the looming end-of-tax year deadline on 28 February.
SARS anticipates up to R12bn from two-pot withdrawals
This is double the initial estimate of between R5bn and R6bn.
Gross two-pot withdrawals top R43 billion
SARS highlights common errors that can lead to application rejections and warns against attempts to evade tax.
Treasury publishes draft amendments to two-pot legislation
The Bill provides for flexibility when provident and provident preservation funds perform the seeding calculation.
