New two pot retirement system

TofuMofu said:
Don't do it Linda!
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Don't do it indeed, with your current pension. But if like me, you have this old one that's paid up 10 years ago and worth less and less each day, taking the money and getting oneself out of debt is not a bad way to go.
In less than 18 months my current pension totally overtook that thing and I consider that my primary investment.
I wanted to cash the old piece of shyte RA out when I was overseas but ja, there was an issue with SARS.

Now the game has changed.
 
TofuMofu said:
Don't do it Linda!
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I was not planning on taking it. But it is starting to look attractive with the current challenges I'm facing. It would be this or a loan.

But this won't work if it takes 3 months to process the withdrawal. Hence my initial question: How long could such a withdrawal take? days, weeks or months?
 
marco79 said:
I was not planning on taking it. But it is starting to look attractive with the current challenges I'm facing. It would be this or a loan.

But this won't work if it takes 3 months to process the withdrawal. Hence my initial question: How long could such a withdrawal take? days, weeks or months?
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I was told 7 to 14 days
 
marco79 said:
I was not planning on taking it. But it is starting to look attractive with the current challenges I'm facing. It would be this or a loan.

But this won't work if it takes 3 months to process the withdrawal. Hence my initial question: How long could such a withdrawal take? days, weeks or months?
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Let Linda be,
images12.jpeg
 
PaulMurkin said:
Don't do it indeed, with your current pension. But if like me, you have this old one that's paid up 10 years ago and worth less and less each day, taking the money and getting oneself out of debt is not a bad way to go.
In less than 18 months my current pension totally overtook that thing and I consider that my primary investment.
I wanted to cash the old piece of shyte RA out when I was overseas but ja, there was an issue with SARS.

Now the game has changed.
Click to expand...

I also have a paid-up RA from over 10 years ago. Not worth much, so was just waiting for it to pay out when I `retire` at 55. The two-pot option makes even less sense here, really.

Since then, I have reinvested two provident funds that are worth a whack-ton more, so even when the RA does pay out eventually, it will probably be worth a regular big mac meal.
 
Bismuth said:
I also have a paid-up RA from over 10 years ago. Not worth much, so was just waiting for it to pay out when I `retire` at 55. The two-pot option makes even less sense here, really.

Since then, I have reinvested two provident funds that are worth a whack-ton more, so even when the RA does pay out eventually, it will probably be worth a regular big mac meal.
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You can move old RA's into another one that you still contribute to.
 
TofuMofu said:
You can move old RA's into another one that you still contribute to.
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I don't believe you can, you can shift to a preservation but there was something around blocking moving it to another RA a while back.... or maybe that was pensions.
 
Ockie said:
So I dont see the option to withdraw on my paid up Discovery RA. Is it not live yet?
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As per my post #91 from yesterday, I can see my new savings pot on 10X, and there is a button on the website for initiating the withdrawal.

You will need to talk with Discovery to get an answer to your question. Unless another Discovery person has already asked and can give feedback here.
 
Has anyone got a withdrawal quote for a person who currently pays zero PAYE do to no income?

Tempted to move my wifes old ones out and into something else, she hasn't worked formally since 2012 so no tax.
 
TofuMofu said:
You can move old RA's into another one that you still contribute to.
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Yeah, I've considered that a few times, but just never done the paperwork. Maybe this will make me get my butt in gear, and do it finally.

If they had implemented this two-pot system when I was, well, between jobs, I may have considered the withdrawal and screw the tax and other implications, but now it is not really worth it for me.

I am just over 10 years way from my planned retirement age, so will rather let it work for me for the next while.
 
Kosmik said:
I don't believe you can, you can shift to a preservation but there was something around blocking moving it to another RA a while back.... or maybe that was pensions.
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You should be able to do this without incurring a taxable event (ie you move the RA dont cash it out) - I did this a few years ago (consolidating a number of smaller RAs into a new RA at a different provider).
 
Kosmik said:
I don't believe you can, you can shift to a preservation but there was something around blocking moving it to another RA a while back.... or maybe that was pensions.
Click to expand...

You can't move between Provident / Pension and RA the "product type" needs to stay the same.

But you can move one RA into another RA, Provident into another Provident etc.

It's purely because they have different rules at retirement.

And none of it is taxable as you don't cash out.
 
starmage said:
You should be able to do this without incurring a taxable event (ie you move the RA dont cash it out) - I did this a few years ago (consolidating a number of smaller RAs into a new RA at a different provider).
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No , that's correct, no tax penalties if moved around in retirement vehicles including preservation. But I think @SauRoNZA post clears it up because it was from a pension to RA or vice versa, that was blocked.
 
Kosmik said:
I don't believe you can, you can shift to a preservation but there was something around blocking moving it to another RA a while back.... or maybe that was pensions.
Click to expand...
I'm pretty sure you can move it where ever you want to as long as you don't try and cash it out, that's not allowed. I moved mine from Liberty (Paid up) to an existing 10X one a few years ago.
 
TofuMofu said:
I'm pretty sure you can move it where ever you want to as long as you don't try and cash it out, that's not allowed. I moved mine from Liberty (Paid up) to an existing 10X one a few years ago.
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Yes but the product was the same "type"

You can't move a Pension into an RA, or an RA into a Pension they are entirely different things with different tax rules.

And a Provident Fund is another different thing.

So a Pension Fund can only move into a Pension Fund and an RA into an RA and same with Provident Fund.

You also can't contribute any more to a Pension / Provident fund unless you are moving it to your new job that has the same, otherwise it will park in an "umbrella" fund that will keep growing out of it's own existing contributions.
 
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