The Two-pot System
Introduction On 29 July 2022, National Treasury issued a media statement on the draft tax bills released for public comment. The media statement set out National Treasury’s proposal on promoting the preservation of retirement savings until retirement, coupled with access to a portion of retirement savings before retirement. This proposed new system is called the “Two-pot system” and is scheduled to come into effect on 1 March 2023. However, the implementation date is likely to be delayed, to allow sufficient time for fund rules, administration, and SARS systems to be aligned. National Treasury has requested that public comments be submitted to them by no later than 29 August 2022. The draft bill may be revised dependent on the feedback received from the industry. The Two-pot system – basic construction The Two-pot system introduces a ‘retirement’ and a ‘savings’ pot, with... Read More
