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.
This story is from the July 22, 2024 edition of The Citizen.
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This story is from the July 22, 2024 edition of The Citizen.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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