In December 2021, National Treasury released a discussion document proposing that a portion of retirement savings can be accessed before retirement. The remaining portion must be preserved until retirement.
This is a fundamental shift to retirement savings in South Africa. What does it all mean, and how will it impact your clients?
In this webinar, host Georgina Smith unpacks this fascinating topic with our technical expert, Jennifer Anderson.
We explore the retirement reform discussion paper released in December 2021. The focus is on the Two pot proposal for retirement funds, whereby a portion of new retirement savings will be accessible to members before retirement. The remainder of the savings will not be accessible in cash either before or at retirement, even on resignation. The webinar will discuss the state of savings, and specifically retirement savings, in South Africa. We will delve into how the paper proposes that the two pots will work, application to various types of retirement funds and vesting rights for existing retirement savings. We cover the proposed and potential tax treatment of the two pots and briefly discuss the future proposals regarding auto enrolment and consolidating retirement funds.
You can expect to learn about:
• The next steps in the retirement reform process to address preservation, coverage and costs
• The state of savings and retirement savings in South Africa
• Explanation of the proposed 2 pot retirement system
• Application of the changes
• Vesting of the rights of members
• Debate on the option of immediate access
• Tax treatment of the two pots
• Implementation and timelines
• Auto-enrolment summary
• Cost savings and consolidation in the retirement savings industry
