Buzzapp Master The two-pot retirement system aims to provide a solution for South Africans who struggle financially due to a lack of “rainy day” funds.
By dividing retirement fund contributions into two pots — a savings pot and a retirement pot — this system is intended to help people preserve and grow their retirement savings, while at the same time giving them access to a portion of those savings for emergency purposes.
According to the Treasury’s estimates, fewer than 6% of South Africans can afford to retire comfortably — and one of the main reasons for this is people cash out their pensions when changing jobs. The new system will remove the ability to do so.
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