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A Chance To Withdraw A Portion Of Your Pensions

Workers in the public sector have been yearning since 2012 for an opportunity to have a piece of their pensions without resigning. Although this is still not allowed, the talks about National Treasury to make changes in legislation are certainly reaching a climax.

The 'Two-Pot System' as it is known, will have two segments. With one part of the segment comprising of the funds that you have been saving on since your contribution to the pension fund. And the other segment that you can dip-in in case of emergency, once in every other year.

Here is the catch, no one is going to have access to the funds that are already saved up. The main pot will remain untouched. Instead, the savings from the other pot which may begin next year in March, are the ones that can be accessed. This will not be a lot of money unless it is left alone for some years.

According to National Treasury, if the employees could be allowed to dip-in into the accumulated funds that would be a financial disaster as many people would end up being a burden to the state after retirement and there would be large sums of money being withdrawn and that would create instability within pension funds.

The legislation amendment will impact all pension funds including the Government Employees Pensions Fund (GEPF). Employees can decide whether to withdraw or not.

Source:https://businesstech.co.za/news/finance/615265/10-things-you-need-to-know-about-south-africas-proposed-two-pot-retirement-system/

Content created and supplied by: Khuboni_Bhele (via Opera News )

National Treasury

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