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Two Pots System
The Two Pots retirement savings system came into effect on 1 September 2024. Learn how it works and what it means for your retirement savings.
The Two Pots system divides your future retirement fund contributions into two components: a Savings Pot (one-third) and a Retirement Pot (two-thirds). A third component, the Vested Pot, holds your existing accumulated savings as at 31 August 2024.
Key Documents
The Three Pots Explained
- Vested Pot — your accumulated savings before 1 September 2024. Accessed under the old rules.
- Savings Pot — one-third of new contributions from 1 September 2024. Can be accessed once per tax year if needed, subject to a minimum withdrawal of R2,000 and tax on withdrawal.
- Retirement Pot — two-thirds of new contributions. Preserved until retirement and must be used to purchase an annuity.
For full details and to understand how the Two Pots system affects your specific situation, please download the documents above or contact the Fund administrators.