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About

Understand Two-Pot

Welcome to the Glacier Retirement Fund Member hub where you will find all the available information on the latest retirement reform change (the Two-Pot System) that became effective on 1 September 2024. This page is aimed at providing you with generic information only — all collateral featured on this page will be updated with the latest detail as they develop.

Guidance

Introducing Tumi Potts

Insights

Retirement reform overview

To ensure that retirement fund members save enough for retirement and that their savings are protected, government has been reviewing and changing the laws that control the retirement fund industry over the last few years.

What is the two-pot retirement system?
The latest retirement reform change proposed by government is the introduction of the two-pot retirement system which will give rise to a massive change in the retirement landscape. The new two-pot retirement system aims to address the need for greater preservation of retirement savings whilst also providing members with limited access to a portion of these savings, before retirement, in cases of emergency.

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Withdrawals

Retirement concerns in South Africa

National Treasury explains that the dilemma with the current retirement regime is that individuals are able to make full withdrawals from their pension or provident fund when they cease employment, and once-off withdrawals from their preservation fund(s). These withdrawals are leaving South Africans high and dry when it comes to capital to provide an income during retirement, causing financial distress and hardship.

In 2021 already, the Sanlam Benchmark Survey indicated that about 75% of South African retirees were reliant on state old age grants as their main income source during their golden years.
There has been a specific focus in legislation during the 2000s to protect retirement fund members from themselves in order to better secure a sustainable income during their retirement years. This strategy is known as the Retirement Reforms in South Africa, and the most recently taken step in this strategy is the Two-Pot Retirement System.

Benefits

Saving for retirement

Any withdrawal from retirement savings prior to retirement will certainly have a detrimental impact on your retirement, as you will have less capital with which to purchase an income. And the loss in value should not just be measured by the withdrawn amount. Savings in retirement funds are protected from creditors, have tax benefits and are not estate dutiable in the event of death before retirement.

These benefits, along with the power that compounded interest growth gives to future income, go a long way to ensuring financial security in retirement. There is very little chance of recovering from such a withdrawal in monetary terms, and it is of the utmost importance to not make this decision lightly and certainly not without the professional advice of a financial adviser.

Resources

Additional resources about retirement reform

Downloadable resources

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	The Public Sector Pocket Guide
	Tax on withdrawals from the savings component - Infographic PDF
	Glacier - Campaign - Resources - Money Marketing Two-Pot Guide PDF sponsored by Glacier by Sanlam
	The practical side of paying tax on a savings withdrawal benefit PDF
	Two-pot retirement system - withdrawals from retirement savings PDF
	SARS Two Pot Tax Savvy Digital Channel Matrix - Infographic PDF
	What will retirement look like from 1 September 2024 - Infographic PDF
	Provident fund members 55 and older on 1 March 2021 - Infographic PDF
	Transfers allowed - Infographic PDF
	Access to Retirement Savings - 1 May 2024
	An overview video - 26 February 2024
	Two-pot retirement system: Overview PDF
	Access to Retirement Savings - 1 September 2024 PDF
	The two-pot retirement system - Interactive PDF
	What you should know about the two-pot retirement system - Flash Fact PDF
	Is the new system applicable to defined benefit funds?
	What to know about the two-pot system when you resign from your retirement fund at work - 23 January 2024
	Department of the National Treasury Two-Pot System FAQ 2024

Retirement reform communication

0 Selected

	Select
	Download the Public Sector Pocket Guide
	Tax on withdrawals from the savings component - Infographic PDF
	MoneyMarketing Two-Pot Guide PDF sponsored by Glacier by Sanlam
	The practical side of paying tax on a savings withdrawal benefit PDF
	Two-pot retirement system - withdrawals from retirement savings PDF
	SARS Two Pot Tax Savvy Digital Channel Matrix - Infographic PDF
	What will retirement look like from 1 September 2024 - Infographic PDF
	Provident fund members 55 and older on 1 March 2021 - Infographic PDF
	Transfers allowed - Infographic PDF
	Access to Retirement Savings - 1 May 2024
	An overview video - 26 February 2024
	Two-pot retirement system: Overview PDF
	Access to Retirement Savings - 1 September 2024 PDF
	The two-pot retirement system - Interactive PDF
	What you should know about the two-pot retirement system - Flash Fact PDF
	Department of the National Treasury Two-Pot System FAQ 2024

Retirement fund member information

Understand Two-Pot

Introducing Tumi Potts

Tumi Potts: Tutorial one

Tumi Potts: Tutorial two

Tumi Potts: Tutorial three