South Africa Proposing a Two-Pot Retirement System
The South African government has recently released draft legislation that would divide occupational retirement contributions into two pots, making one-third of the funds accessible prior to retirement and the remaining two-thirds available only at retirement or death.
The new system, known as the “two-pot” system is expected to come into effect on 1 March 2024, at the earliest—the government has proposed an implementation delay that would move all implementation dates from 2024 to 2025, but it remains to be seen whether Parliament will adopt the postponement.
