Two-pot system Withdrawal

If you have retirement savings, will you withdraw funds if Two-Pot System is implemented?

  • Yes

  • No

  • Undecided

Results are only viewable after voting.
TheJman

TheJman

Executive Member
Joined
Jul 16, 2011
Messages
6,587
Reaction score
2,302
What are people thinking regarding withdrawing from your pension / provident funds, if the two-pot system is implemented?
 
Nope, unless Im really reeaaaaaaaly deep in the dwang and my other backups are depleted (and even then I would try and avoid it)
.
 
I have to make a mandatory contribution to the retirement fund at work, which is crap. I already have too much money in that stupid fund. I may actually take some out, take the tax hit, and invest it properly.
 
Come 1 Sept a Savings Pot will be created with UP TO R30 000 from 10% of your current fund value, aka seed capital for the Savings Pot, the rest of current fund value will go into a Vested Pot.

So the max you will be able to withdraw come Sept is R30 000 or less, then as time passes, 33.33% of future (post 1 Sept) contributions will go into this Savings Pot, so it will take a while to build a significant amount.

Only 1 withdrawal a tax year (do not know if this is across all funds if you have more than 1). Withdrawals will be taxed at your income tax percentage.
 
Not unless I really need to. As it is I don't have enough saved. This system is going to bite us hard in years to come
 
Goosfrabba said:
Not unless I really need to. As it is I don't have enough saved. This system is going to bite us hard in years to come
Click to expand...

Harder than the current system where people withdraw everything in retirement funds when changing jobs to buy a new car or quit to get their retirement funds to put into MTI or whatever other scam?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X