President Cyril Ramaphosa has approved the Pension Funds Amendment Bill. This will allow amendments to pension-related legislation to enable the implementation of the two-pot retirement system aimed at bolstering retirement savings.
The law will also allow for the introduction of savings withdrawal benefit of an account holder’s interest in the savings, retirement and vested components. Presidency spokesperson Vincent Magwenya says government proposed a reform to the retirement saving regime.
As of the 1st September 2024, one-third of retirement contributions will be split into savings component and two-thirds into a retirement component.
What is in the “savings component” will be available for withdrawal at any time before retirement. However, a member will only be allowed to make a single withdrawal within a year of assessment.
