Two-pot System Update

Member Newsletter

Quarter 1 • 2024

Dear Member

The two-pot system is proposed to take effect from 1 September 2024. Once finalised, the system aims to provide members with more financial security.

It is proposed that after 1 September 2024, your retirement contributions will be split into two pots – two-thirds into your retirement pot and one-third into your savings pot. You MAY NOT withdraw any cash from your retirement pot. You MAY withdraw cash from your savings pot once every tax year. Remember that you cannot access your money before the effective date.

In this newsletter we explain why budgeting is important. Using a budget helps you to control your spending and take charge of your finances. We also look at the 2023 investment returns. Once again, proof that patience pays off – over the long term you will reap the benefits.

TWO-POT SYSTEM
For more information on the two-pot system, please click here.

In This Newsletter:

TWO-POT SYSTEM UPDATE

THE TWO-POT SYSTEM IS proposed to take effect from 1 September 2024.
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There IS anxiety among members ABOUT the PROPOSED
TWO-POT SYSTEM – FOR THE following TWO reasons:
1
The sharing of false information
Members are not accessing reliable sources of information on the two-pot system and often false information is being shared.
2
The two-pot system is not yet finalised
Retirement funds are waiting on final direction from the government on the two-pot system. This will come in the form of an updated Bill that may more closely resemble the final aspects of the two-pot system and how it will apply. The updates aim to provide members with more financial security.
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What is the two-pot system?
It is proposed that from 1 September 2024 any new retirement contributions that you save into your retirement fund will be split into two pots – one-third into your savings pot and two-thirds into your retirement pot.
  • You MAY withdraw cash from your savings pot once every tax year.
  • You MAY NOT withdraw any cash from your retirement pot.
  • Previous communication on the two-pot system can be found in our newsletters on our website. Please note that some of the information has become dated but the general content explaining the two-pot system and what it is trying to achieve is still relevant.
  • We have a two-pot system page on our website which is up-to-date. It reflects and clarifies details as and when they are released by the government.
The proposed effective date is 1 September 2024. Please note that you cannot withdraw any cash before this date.
There are rumours suggesting that you need to act before 1 September 2024. This is not true. You do not need to take any action before 1 September 2024.

In This Newsletter: