The two-pot retirement system in South Africa is designed to provide more flexibility and financial security for retirement fund members. Here’s a brief overview of how it works:

1. Two Components: Your retirement savings are divided into two pots:
   • Savings Pot: This pot allows you to access a portion of your retirement savings before retirement. You can withdraw from this pot once a year, with a minimum withdrawal amount of R2000.
   • Retirement Pot: This pot is preserved until you retire. It ensures that you have funds available for your retirement years.
2. Contributions: Contributions to your retirement fund are split, with one-third going into the Savings Pot and two-thirds into the Retirement Pot.
3. Tax Implications: Withdrawals from the Savings Pot are taxed at your marginal tax rate. The Retirement Pot remains untaxed until you retire and start drawing from it.
4. Seeding Capital: When the system is implemented, a portion of your existing retirement savings (up to 10%) can be transferred into the Savings Pot as “seeding capital”.

This system aims to provide financial relief in times of need while ensuring that a significant portion of your retirement savings is preserved for your retirement years.

To claim from your pension fund under the new two-pot system in South Africa, follow these steps:

1. Check Eligibility: Ensure you meet the criteria for withdrawing from the Savings Pot. You can withdraw once a year, with a minimum amount of R2000.
2. Contact Your Fund Administrator: Reach out to your retirement fund administrator or HR department to get the necessary forms and information.
3. Complete the Forms: Fill out the required withdrawal forms. You may need to provide identification and other relevant documents.
4. Submit the Forms: Submit the completed forms to your fund administrator. They will process your request and handle the tax implications.
5. Receive Funds: Once approved, the funds will be transferred to your bank account. Remember, withdrawals from the Savings Pot are taxed at your marginal tax rate.

For the Retirement Pot, you can only access these funds upon retirement.

Contact your Fund Administrator for further info and assistance