Two-pot retirement system delayed to September 2024

JOHANNESBURG - Bad news for households that were banking on accessing a portion of their pensions under the two-pot system in March next year.

Parliament has now agreed to postpone the implementation of the system to September.

Parliament's Standing Committee on Public Finance has agreed to postpone the implementation date of the two-pot system to 1 September 2024.

READ: COSATU WELCOMES TWO-POT RETIREMENT SYSTEM PROPOSALS

This comes after a proposal made by Finance Minister Enoch Godongwana, which originally proposed pushing it out to 1 March 2025.

The committee felt that the financial needs of struggling workers required an earlier date and went against Treasury’s proposal.

Fund managers have welcomed the postponement arguing that, in its current form, it will confuse retirement fund members and treasury advised that it will also be difficult to manage administratively from a tax point of view.