Efforts to reform South Africa’s complicated retirement savings landscape are forging ahead with the aim to ensure better retirement outcomes in the future.
Efforts to reform South Africa’s complicated retirement savings landscape are forging ahead with the aim of ensuring better retirement outcomes in the future.
Through the two-pot system, workers will not need to resign from their employment in order to gain access to their retirement funds. “The reforms to date have all contributed to improvements in retirement outcomes for members, and the two-pot system takes this further by enabling more meaningful improvements in outcomes. For example, a new member joining under the two-pot system could expect retirement outcomes to be 2 to 2.5 times better on average, relative to the current regime.
The bill of which public comment was being sought until 29 August 2022, has its roots in a discussion document published by the government in December 2021, which proposed a new regime addressing the two concerns raised.The two-pot system will allow individuals to contribute to a one-third “savings pot”, which will be accessible without one having to change their employment status, and a two-thirds “retirement pot” which must be preserved until one retires.
“This is one of the reasons why the solution for South Africans needs to help balance long-term retirement savings goals and to meet short-term financial needs. However, it will still be important for members to also save outside of a retirement fund for short-term financial needs, as the retirement savings should only be accessed before retirement as a last resort,” notes Lange.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: 5 Essential Reads On Migrant Access to Healthcare in South AfricaAnalysis - The hostility against foreign nationals that has been displayed outside some of South Africa's hospitals is not new or isolated. South Africa is home to about 2 million immigrants, many of whom struggle to access a variety of public services, including healthcare.
Read more »
Business Maverick: South African Treasury Rejects Covid-19 Welfare Grant ExtensionSouth Africa’s National Treasury warned the country can’t afford to extend welfare grants to the poor, citing an over-stretched budget and spending pressures including additional funding requests from state-owned firms totaling 12.8 billion rand ($730 million).
Read more »
Sectional title complexes in South Africa could make their own biogas to help beat load-sheddingSouth Africa does need some gas in the energy mix — just not the kind Gwede Mantashe wants.
Read more »
South African retail CEO that dominated his competitionDaily Investor analysed the shareholder returns generated under various retail CEOs.
Read more »
'It's incorrect to label South Africans xenophobic, deal with migration' – Thulas Nxesi | Fin24Minister Thulas Nxesi says South Africans are frustrated by the leaking borders when millions of its citizens cannot find work. Therefore, it is incorrect to label them xenophobic when there is a conflict for jobs between them and foreigners. | Fin24
Read more »
Beware grandparent scams in South Africa – perhaps the worst of them allCybercrime has multiple niches and approaches, but perhaps the worst is the targeting of older people and taking advantage of their vulnerability, notes KnowBe4 AFRICA, a provider of security awareness training.
Read more »