supersunbird
Honorary Master
The R30 000 (max, if you have R299 999 or less in a fund, it will be 10% of that fund) is just seeding capital for the savings component.
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New two pot retirement system
- Thread starter supersunbird
- Start date
The R30 000 (max, if you have R299 999 or less in a fund, it will be 10% of that fund) is just seeding capital for the savings component.
You will be surprised how some of the Jones live.
I had a coworker that made a loan and maxed out credit cards to go on a two week holiday oversea.
R30k (gross) will plug a hole somewhere.
supersunbird
Honorary Master
"The Budget Review says about R5bn is likely to be raised in 2024/25 due to tax collected as fund members access the once-off withdrawals from their savings"
Will have to see how their prediction pans out, they predicted we would pay for e-tolls.
So 30k just sits there until you withdraw it. Might earn interest if treated like cash or nothing, or maybe just a mirror balance with 90% missing.
Maybe cash it in, take the tax hit and move to offshore USD, or use to almost max TFSA. TFSA isn't forced to be x% SA.
Maybe cash it in, take the tax hit and move to offshore USD, or use to almost max TFSA. TFSA isn't forced to be x% SA.
supersunbird
Honorary Master
And 33.33% of future (post 1 Sept 2024) retirement fund contributions get added to it. It would most likely be in exactly the same instruments as the retirement component of the fund.
I cannot see how this will effect the R550k on retirement.
SeRpEnT
Executive Member
Bit unclear to me.
If one doesn't plan on making use of this pot... will the savings component have the same investment growth as the other pot?
TofuMofu
Honorary Master
I would fecking hope so, otherwise we're all being screwed!
SeRpEnT
Executive Member
True, but in this country...you just never know what to expect, lol.
TofuMofu
Honorary Master
Yip...this is also just a ploy to get hold of more tax money...they cannot be trusted.
supersunbird
Honorary Master
Yes.
The intention is for these savings to be savings of last resort.
The retirement component pot will not be accessible to resignation and such anymore.
Cage Rattler
Expert Member
Implementation.. almost everyone is using a single physical pot behind the scenes and keeping a virtual split as the pot proportions change .. that's how I implemented it at one of the largest providers otherwise the existing systems to maintain different split portfolios become super complex.
zerocool2009
Honorary Master
Its very simple: see it as if this never existed!
supersunbird
Honorary Master
Only once a tax year (so not any point in time, there are limitations), and only the savings component, you cannot access the 66.66% going into the retirement component, even when resigning.
Pho3nix
The Legend
My understanding is it’s to help plug the hole the middle and lower class have with a cash injection and also taxes for Government.
Haven’t seen anything mention the R30k gaining interest etc, sounds like a savings pot
supersunbird
Honorary Master
It will be invested like the rest, because it is meant for retirement.
Sideshow Bob
Honorary Master
I really doubt people will jump at opportunity to withdraw just R30K. Time will tell. I personally won't. I mean I can just use CC/overdraft if I need R30K for emergency.
Pho3nix
The Legend
People are using the R30k to pay off their existing CC or overdrafts
Pho3nix
The Legend
In the same plan(?) as the rest of your pension/provident fund?
Should probably ask my financial advisor about this