Two-pot Retirement System: Katlego Legodi unpacks

From the 1st of September South Africans can have access their part of the retirement savings.
This follows President Cyril Ramaphosa's signing the Pension Fund. Amendment Bill into law to implement the Two-Pot Retirement System.

The legislation facilitates flexibility regarding for South Africans.

Two-Pot Retirement System will enable workers to access a small portion of your retirement savings before retirement for emergencies. The new retirement system is expected to encourage preservation while also assisting South Africans who are battling to make ends meet.

Members of retirement funds will be able to withdraw a maximum of 10% or a maximum of R30 000 from their retirement fund.

This amount will be taxed according to your income and tax marginal rate.

SABC News reporter Katlego Legodi joins us here in studio to unpack the two-pot system.

[bensenzo]

It's easy for people with money to tell people not to withdraw their monies. But some people have no money at all on their account and need this. You will see that with the amount of applications when this starts. People know the risks, they're not stupid. But they also need money
Besides, every withdrawal or income always gets taxed. Even if you leave your money until retirement, it will still get taxed at that rate you'll be in. You just have to make sure you don't make it a habit to withdraw every year, ONLY if you need to (for an emergency, like a hospital operation payment)

[celannhleko]

Weren't confused, we're scammed by the ANC here. In fact, this is not worker's interest purpose, it limits access to our money up until we reach 60 years of age. We want to withdraw and use our money while we're still capable of running our financial affairs before we reach the age of 60.

[da-generalthomzinthomas]

This is not for the best interest of the working class. If they feel we're too indebted, of which i am, then they should focus on cutting down the interest rates and prices of all this expensive groceries, fuel and other stuff, then and only then that would be in the hest interest of the people. This is just a plan to push tax money high and suck the masses financially dry. We're basically modern slaves now cause we work but are refused access to our hard earned money. Retirement money is not government freebies but money deducted from our salaries so locking it up with all this laws is crime against the working class. This "explanation" is just sugarcoating the truth.
We need a different government, one that wont use the working class as mineral resources since the current government is scared of going down that route of using actual mineral resources to enrich the country. Poor governance 😢

[WilliamPetersen]

Let's countdown to the system that will allow the majority of people to retire with close to nothing left. Sure enough, there's people that need this money now, and if they think they're screwed now financially, they got an ugly surprise waiting for them in the years ahead.

[bensenzo]

Her glasses are crazy. Who the heck comes up with these designs?😅

[wahalawalala]

Hebane, it is now R25 000? not R30 000 as previosly reported

[darlingtonmachilar]

Why are you policing other people's money? It's their money and they can do whatever they want with it

[franstomposa]

No financial institution will loan you enough money to start your own desired business because the system is absolutely designed to exclude mostly black people to participate into an economy but with this funds most people have started their own business and succeeded. We totally reject this law

[mogomotsimalele]

According to my proposal we don't have government our leaders are selfish we can't they allow us to use our money that we working hard for it, we being robbed by our employees and now government is robbing us, it's painless 😢😢😢

[mzwandilethandanani]

For us who's getting taxed 26% if you take 30000 you get 22000

[sanchiape]

This information is incorrect. Please read the Revenue Laws Amendment Act, 2024 and the Pension Funds Amendment Act, 2024 before making such incorrect statements.

[zenobiavanwyk]

R30 000 I will have money for food for the first time in almost 10 years. I am the only breadwinner of five people.

[PhilaniGumede-rq]

Government retirement and oud mutual retirement fund do I take money from both retirement funds?

[DeniseFerreira-il]

Will the money reflect automatically into your account 🤔

[PhindileMahlangu-fm]

Grow more until it gets lost at old mutual? Ngeke eyami ngiyayilanda

[RichardNdlebe]

My question is what about our old money that will kept on vested pot as 3 pot system if i got it rite they say the money that will kept on vested pot it's your old money !so the question is if i lose my job they will realise my money on vested pot all ?

[discusmoduke]

Y you tax the money cause has already been taxed ???

[masixoledingana]

Tax🤦💔🙆
Would suggest people not take it.

[nkosingiphilemkhaya]

If I need is it possible 🙆 because R30000 is nothing I can do

[ThamsanqaSipho]

I have 28k in my provident fund so how much im going to get guys please assist im debts i really need this money to start again