South Africans will be able to access one-third of their retirement savings throughout their career, while two-thirds will only become accessible on retirement. 

When South Africans resign, the reform is intended to prevent them from cashing out their retirement savings. 

The amendments allow South Africans to save for non-retirement purposes (such as emergencies) through their retirement funds while retaining more of their savings for retirement,” Treasury said in a statement. 

“These amendments aim to encourage members to save for retirement by making it more flexible to accommodate unforeseen pressures that members face over the course of their working lives.” 

According to the Treasury, the new legislation will also prevent employees from resigning in order to access their retirement funds. 

According to the new proposal, a member of a pension fund, a pension preservation fund, a provident fund, a provident preservation fund, or a retirement annuity fund may make one withdrawal in any 12-month period, but that withdrawal cannot be less than R2 000. 

The legislation specifies March 1, 2023 as the start date for the new regulations. 

Interested parties have until August 29 to provide Treasury with comments. 

According to the Actuarial Society of South Africa, a two-pot system would triple retirement savings in South Africa.

Don’t forget to follow us on Facebook Instagram Twitter LinkedIn to get the latest updates from Cape Town Tribune

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get notified of the best deals on our WordPress themes.

You May Also Like

South Africa now has 87 Covid vaccine sites – you can register here

South Africa’s Health Minister, Dr Zweli Mkhize, said 87 destinations are prepared to inoculate the old as the nation slopes up immunization endeavors.

Look Inside Love Island Of South Africa

Did South African’s see it all? According to Love Island SA‘s Millie Terblanché – nope! In this exclusive interview, the reality TV influencer dishes

Joe Lara, Actor In Tarzan, Was Among Those Who Had Travelled To The United States Of Russia

The U.S. The plane conveying seven travelers, including Tarzan entertainer Joe Lara and his eating routine master spouses, is said to have slammed

South Africa’s Health Department Has Made Recommendations For Tighter Lockdowns

As per the Service of Wellbeing, at a public committee meeting on Tuesday evening, it will make suggestions on extra lock-down limitations. (South)