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Fin24 reports that Treasury and Parliament's Standing Committee on Finance have reached a compromise on the implementation of the so-called two-pot retirement system, with a new proposed starting date of 1 September 2024.
The two-pot system will allow people to access a third of their pension savings before retirement. While a date of March 2024 was initially proposed, Treasury subsequently pushed it out to March 2025. However, MPs were unhappy and last month appealed to Finance Minister Enoch Godongwana and asked for the earlier date to be implemented. The new date was proposed in a letter by Godongwana that was read out to the committee on Monday. Godongwana highlighted several concerns about the March 2024 implementation date, including the tabling of key legislation and the amendment of retirement fund rules. "There are 1 324 retirement funds [that] will all be required to submit amended rules for registration and approval," he pointed out. South Africans are currently able to withdraw their full pension savings, subject to taxation, when they leave a job, though this means that many people enter retirement with little to no capital once they reach retirement age.
- Read the full original of the report in the above regard by Ahmed Areff & Na'ilah Ebrahim at Fin24
- Read too, Finance committee agrees to September start for two-pot system, at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page