Two-pot retirement system FAQs

Your retirement money saved up until 31 August 2024:

• Your saved money will stay in your “vested component”.
• On implementation, we allocate 10%, up to a maximum of R30 000, of this vested component to your “savings component”.
• This “seed capital” will be the opening balance in your savings component.
• You can withdraw from the savings component once a year between 1 March and the end of February. The withdrawal amount must be more than R2 000, but there is no limit – you can withdraw 100% of your savings component.

From 1 September 2024, all your contributions to the retirement fund will be split in 2:

• 1/3 will go to your savings component, which you can access once a year, as stated above.
• 2/3 will go to your retirement component, which you may not use until retirement.
• At retirement, you can take the total balance in your savings component as a lump sum. You must use your retirement component to purchase a monthly income.

For instance, if you contribute R1 200 a month to a retirement annuity fund, R400 goes to the savings component, and R800 goes to the retirement component. You can withdraw from the savings component once a year if the amount is at least R2 000.