South Africa will implement a new two-pot retirement system by September, allowing members to access short-term savings while ensuring long-term retirement savings. However, there are potential risks and challenges associated with the new system.
South Africa will have a new two-pot retirement system by September this year, but there are several risks facing members and the industry. As the name suggests, the two-pot retirement system will have two pots – savings and retirement savings . The savings pot will hold a maximum of one-third of all retirement savings and will be accessible prior to retirement. The retirement pot will hold a minimum of two-thirds of all retirement savings and will only be accessible at retirement.
A third vested pot will also be present and hold all retirement savings from before the system is introduced whilst also following all current regulations. The system is intended to ensure that South Africans can access short-term savings as a financial safety net, with the Covid-19 pandemic showing that there are times when immediate access to finances is more important than the need to save for retirement. Although Rael Bloom from Coronation said that the system should result in better retirement outcomes for members in the longer term, he highlighted three potential problems in the new syste
South Africa Retirement System Two-Pot Savings Retirement Savings Financial Safety Net Covid-19 Immediate Access Long-Term Outcomes Potential Problems
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EcoFlow Introduces Portable Fridge with Integrated Ice Maker in South AfricaEcoFlow has released its portable fridge with an integrated ice maker in South Africa. The fridge promises dual zones, dual controls, and a divider, along with a plug-in battery for up to 40 hours of use. It also features an energy-saving Eco mode and can make 18 ice cubes in 12 minutes.
Read more »
Africa's Tech Startup Scene and Global Interest in Africa's FutureOnly 716 000 of the world’s 26.8 million developers are based in Africa, but SA has the most developers on the continent - and the promise of a thriving local tech startup scene. African leaders, like many other global leaders, have had to navigate a volatile landscape with each day presenting a new chapter. The World Economic Forum, the BRICS Summit, and the Financial Times Africa Summit highlighted the much-talked-about promises on the continent and made clear the unprecedented global interest in Africa’s future.
Read more »
Africa's Potential in Green Energy IndustrySouth Africa and other African countries discuss Africa's role in creating renewable energy industries on the continent, with Africa having significant reserves and production of green minerals.
Read more »
South Africa Proposes Overhaul of Vehicle Industry to Transition to EVsSouth Africa is positioning itself to transition to EVs as part of decarbonisation in line with the country’s nationally determined contributions towards net zero and for economic purposes. Government is proposing a complete overhaul of the vehicle industry that will have consequences for jobs, skills development and transportation in South Africa.
Read more »
Private Power Generation Set to Explode in South AfricaPrivate power generation is expected to grow rapidly in South Africa, bringing stability and recovery to the economy. The government's decision to allow private businesses to compete in the energy market has led to a surge in investments. The recent court ruling blaming the ANC government for power failures has further fueled the private sector's interest in alternative power sources.
Read more »
South Africa's GDP Contracts More Than ExpectedSouth Africa's gross domestic product (GDP) decreased by 0.2% in the third quarter of 2023, surpassing economists' expectations. The decline was observed across various industries, with the agriculture sector being significantly affected. This unexpected contraction in GDP reflects the challenges faced by the South African economy.
Read more »