It's three pots and not two

BIG CHANGES: HOW THE RETIREMENT SYSTEM WILL WORK WHEN YOU RESIGN FROM YOUR JOB

- Tshehla Cornelius Koteli

Access a part of your funds, ensure financial security.

The two-pot system will change how South Af rican retirement funds will operate and will also include what happens when someone resigns.

The system allows South Africans to access a portion of their retirement funds, while also ensuring long-term financial security.

Elda du Toit, professor of financial management at the University of Pretoria, says although it is called the "two-pot system", it is actually a "three-pot" system.

She says the three pots are vested, retirement and savings. Du Toit says you will have an option about what to do with the pots when you leave your job before retirement.

When it comes to the vested pot, the money can be taken out, transferred to a new fund, or left paid up in the existing fund.

The retirement pot must be transferred to the next retirement pot in a new fund or left paid up in the retirement pot of the existing fund.