The once-off retirement withdrawals in March 2024 will incur administration costs and taxes. But Old Mutual says many low-income earners are prepared to pay that price.Government employees will be left out of the two-pot retirement system if rules for their pension funds are not amended, National Treasury has warned.
During a meeting with the Standing Committee on Finance on Tuesday, Treasury said the rules for multiple pension funds, including the Government Employees Pension Fund, the Transnet Fund, Telkom Fund and Post Office Fund need amendments. The new two-pot system means South Africans will be able to cash out one-third of their future retirement savings throughout their career, while two-thirds will only become accessible on retirement. The one-third component is called the"savings pot", while the other two-thirds is the"retirement pot".South Africans need to be in the know if we want to create a prosperous future.