Two-Pot Retirement System: What is the withdrawal process?

(Media Release: Issued and provided by the National Treasury Republic of South Africa)

The two-pot retirement system is a reform that will allow retirement fund members to make partial withdrawals from their retirement funds before retirement while preserving a portion that can only be accessed at retirement to help improve retirement outcomes.

This means members need not resign to access part of their retirement benefit if they are in financial distress. 

This reform will come into effect on 1 September 2024.

WHO IS IT MEANT FOR?
The new system will apply to all active retirement fund members in both private sector and public sector funds, except for the old generation or legacy retirement annuity policies, or funds with no active participating members (such as funds in liquidation, beneficiary funds, closed funds or dormant funds).

Pensioners and members of provident funds that were 55 years and older on 1 March 2021 who have not opted to be part of the two-pot system will also be excluded.

View the full frequently asked questions on the Two-Pot Retirement System here.