New two pot retirement system

Resign vs retire. Age is the only number that matters here.
 
Will both pots still sit at the same house/institution? Or will the government house the savings pot? Also, a little dom with this things, will the interest / compound interest still work the same way as before or will this weaken or strengthen the growth? I'm not planning on taking money out.
 
KleinBoontjie said:
Will both pots still sit at the same house/institution? Or will the government house the savings pot? Also, a little dom with this things, will the interest / compound interest still work the same way as before or will this weaken or strengthen the growth? I'm not planning on taking money out.
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All at same house and, if you don't withdraw, then basically there's no effect.
 
KleinBoontjie said:
Will both pots still sit at the same house/institution? Or will the government house the savings pot? Also, a little dom with this things, will the interest / compound interest still work the same way as before or will this weaken or strengthen the growth? I'm not planning on taking money out.
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Yes, in same house/institution.

Government has nothing to do with it beyond the legislation, regulations and collecting taxes if there is withdrawals.

The growth will still depend on market forces and be the same as if this system was not implemented.
 
For a test to see the end result...
taxed R11750
I get 18250 paid out
the end result is a R64000 loss when I retire, supposedly in 12 years.
This is not your friend....
PS, they have no idea how long it will take to actually pay you out. Taxman has to check, then they follow some procedure. cannot guess as to a week, weeks or month even.
SO overall a very bad idea
 
Big Rat said:
For a test to see the end result...
taxed R11750
I get 18250 paid out
the end result is a R64000 loss when I retire, supposedly in 12 years.
This is not your friend....
PS, they have no idea how long it will take to actually pay you out. Taxman has to check, then they follow some procedure. cannot guess as to a week, weeks or month even.
SO overall a very bad idea
Click to expand...
The ONLY way this actually makes sense is if you are retrenched or earning low as your nominal PAYE is applied. In those cases you would pay no tax unless there is a minimum?

Based on previous tax directive, a week is a decent guess. When I was younger killed some older pres funds to pay for home deposit etc and was taxed the 18% then.
 
I assume 64K loss is nominal amount after 12 years ... looks like a simple inflation adjusted amount ... if investment growth is 9% ... my 2pot engine gives around R42k in today's money, which is around R86k loss in 12 years time ... for equivalence, looking at around R250pm increasing with inflation over 12 years to replace the lost amount.
 
Cage Rattler said:
I assume 64K loss is nominal amount after 12 years ... looks like a simple inflation adjusted amount ... if investment growth is 9% ... my 2pot engine gives around R42k in today's money, which is around R86k loss in 12 years time ... for equivalence, looking at around R250pm increasing with inflation over 12 years to replace the lost amount.
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What are you going on about? What is this loss you are mentioning? Are you invested in some high fees fund?
 
Anyone know how long this 2 pot savings payout takes when withdrawing?

I am seriously considering it as I am relocating and will need some extra funds for the move.

I've done some online calculator at eithr old mutual or discovery or 1 of the big investment houses and it says I would have to contribute an extra R200 per month to make up the shortfall created by this R30k withdrawal between now and my retirement.
 
marco79 said:
Anyone know how long this 2 pot savings payout takes when withdrawing?

I am seriously considering it as I am relocating and will need some extra funds for the move.

I've done some online calculator at eithr old mutual or discovery or 1 of the big investment houses and it says I would have to contribute an extra R200 per month to make up the shortfall created by this R30k withdrawal between now and my retirement.
Click to expand...
Don't do it Linda!
 
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