TWO POT RETIREMENT SAVINGS: TREASURY ISSUES CAUTIONARY MEDIA STATEMENT

TWO POT RETIREMENT SAVINGS: TREASURY ISSUES CAUTIONARY MEDIA STATEMENT

• 30 July 2024
• Financial Sector
• SA Legal Academy

National Treasury has issued a media statement welcoming the Pension Funds Amendment Act to the statue books while nevertheless urging fund members intending to make withdrawals from the savings component of their funds to ‘consider the implications’ of doing so, especially bearing in mind that:

• ‘administration costs and tax at marginal rates will be deducted from such withdrawals’ and that
• ‘members will lose out on all related future growth and the retirement benefit originally intended for those funds’.

This is noting that – as prescribed in the Revenue Laws Amendment Act, 2024 – the two-pot retirement savings system’s implementation is scheduled to commence on 1 September 2024 ‘after proclamation by the President’ in the Government Gazette.

• media statement
• Pension Funds Amendment Act
• Revenue Laws Amendment Act

Published by SA Legal Academy Policy Watch

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