South Africa’s Two-Pot Retirement System gives retirement fund members limited access to a portion of their retirement savings before retirement, while protecting the majority for the future.
Retirement savings are divided into three components:
Vested Pot – Savings accumulated before the Two-Pot System was introduced.
Savings Pot – One-third of future contributions, which may be accessed once per tax year, subject to the applicable requirements. Withdrawals are taxable and reduce retirement savings. Retirement Pot – The remaining two-thirds of future contributions, which must generally be preserved until retirement. The aim is to balance short-term financial needs with long-term retirement security.
Remember: Any withdrawals made today will not be available to support your retirement.
For more information on retirement planning, contact the Association’s Retirement Fund Administration Department on 031-831 3217 or email retirementfund@masterbuilders.co.za.
Vishane Pramrajh | Retirement Fund Administration Manager
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