Moneyweb reports that members of retirement funds who lose their jobs may in the future be allowed to access funds from their retirement portion under the two-pot system.

This was proposed in National Treasury’s draft Budget Review 2025, which was made available to the media and economists on Wednesday morning before the budget speech was cancelled. Treasury noted that during the public comment process in respect of the two-pot retirement reform, several issues were identified to be addressed later. “This included the matter of withdrawals from the retirement portion if one is retrenched and has no alternative source of income.” Under the two-pot system, which came into effect on 1 September last year, employees’ pension fund contributions are divided into a one-third savings pot and a two-thirds retirement pot. The two-thirds portion must be preserved until retirement and then annuitised. Government received requests to allow access to the retirement component when an individual was retrenched. Treasury noted: “The restructuring required for this proposed reform is complex and therefore forms part of the second phase of the two-pot reforms. Government is beginning work and discussions on measures that may allow access to the retirement component if an individual has been retrenched and is in financial distress.” Treasury emphasised, though, that “strict conditions” would apply to this access. Once the research on this matter has been concluded, labour and other industry stakeholders will be engaged.

• Read the full original of the report in the above regard by Liesl Peyper at Moneyweb

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