Two-Pot Retirement System Explained by Old Mutual Corporate
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- čas přidán 6. 09. 2024
- Watch this easy-to-follow animated video that explains how South Africa’s proposed two-pot system for retirement savings - and accessing them before retirement - could work.
Learn more about Old Mutual Corporate and our retirement solutions for businesses here: www.oldmutual....
Learn more about the proposed changes to retirement-fund regulations
www.oldmutual.co.za/2pot
#OldMutual #pensionfunds #retirement
So all money we’ve accumulated until the 30 August will be vested pot right. Then 10% of that money will go to my saving pot from 1 sept 2024 and then my retirement pot will start from balance of 0.00? Then as per my contribution every month 1/3 of it will go to saving pot and 2 /3 of it will go to retirement pot is that right ?😅
That is 100% correct, Masego!
R30 000 - 40%tax =R18 000...and ask yourself whatu gon do with 18k in this wicked economy.
Hi there, Savings Pot withdrawals are seen as “income” by SARS. SARS will apply the marginal income tax rate, which is the tax rate payable based on your current earnings at the time of the withdrawal, to the amount that you withdraw. In addition to the tax that you will pay on your Two-Pot withdrawal, SARS also requires that you pay any additional outstanding money that you may owe to SARS as well.
Old Mutual will pay out the amount of the withdrawal less the tax payable on the withdrawal and less any outstanding money that is owed to SARS.
Hi there, Savings Pot withdrawals are seen as “income” by SARS. SARS will apply the marginal income tax rate, which is the tax rate payable based on your current earnings at the time of the withdrawal, to the amount that you withdraw. In addition to the tax that you will pay on your Two-Pot withdrawal, SARS also requires that you pay any additional outstanding money that you may owe to SARS as well.
Old Mutual will pay out the amount of the withdrawal less the tax payable on the withdrawal and less any outstanding money that is owed to SARS.
Will I be able to transfer the savings pot into an annuity without it being taxed ie in the old system I could 3/3 to an annuity
Hello, that is correct. If you reach your retirement age and have your vested savings and retirement pots all still intact.
You can opt to purchase your annuity with the entire portion. If the value is under the commute amount (combined) and want to take the full portion, this will be allowable at retirement age.
Why are we only able to withdraw from 23 September?
Hi there, we have switched over to the two-pot system as of the 1st of September. With phase 1 viewing of values via WhatsApp as well as update their details. Phase 2 (from 23 September 2024): Withdrawal claims on WhatsApp. allowing us to handle the 600,000 applications expected.
Hello,
We have switched over to the two-pot system as of the 1st of September.
The implementation of the two-pot system will happen in phases to handle the expected 600,000 applications smoothly and securely:
Phase 1 (1-22 September 2024): Customers can view retirement values via WhatsApp (0860 933 33 3) as well as update their details to ensure that they match on our system.
Phase 2 (from 23 September 2024): Customers can submit withdrawal claims on WhatsApp.
Only Retirement Fund members can withdraw, not third parties.
@old Mutual.. I was thinking of resigning from work on November and i haven't reached 55 years, will i be able to get full amount of what's due to me??
Hi there, Old rules will apply to your retirement savings accumulated as at 1 September. You will still have access to some of your accumulated retirement funds (which will be in your vested pot) when you leave - one third of your investment (as at 1 September) can be taken as cash. You can also access what is in your Savings Pot if you leave after September 2024.
Hi Mhlonishwa, thank you for getting in touch with us.
If you have a pension fund and you resign, you will be able to access all the money in your vested pot as well as what is in your Savings Pot (provided that you did not make any prior withdrawal from your Savings Pot)
@old mutual I'm a bit slow. Please tell me, let's say my 10% is r100 000 and I understand I can only access r30 000 of that, where does the remaining r70 000 go? Does it form part of the 10% that I can access going upwards, meaning it will remain as a balance in my savings pot?
Hi, The Two-Pot Retirement system is a proposed change to improve financial security and encourage saving for retirement. Your retirement contributions will be split into two parts: a 'savings pot,' which is one-third of your contributions and can be accessed before retirement if needed, and a 'retirement pot,' which is two-thirds of your contributions and will be preserved until you retire.
@@oldmutual I understand all that you've mentioned here. My question was about the breakdown of the monies and percentages I mentioned in my question.
Hi R70 000 will remain in your vested pot
@KJN2673 thank you for your response. The remaining funds will be moved into your vested pot. It will not remain as a balance in your savings pot. As from the 1st of September your future contributions will be split where one-third will go into your savings pot and two-thirds into your retirement pot. Your vested pot will be governed by the old retirement rules.
@KJN2673 thank you for your response. The remaining funds will be moved into your vested pot. It will not remain as a balance in your savings pot. As from the 1st of September your future contributions will be split where one-third will go into your savings pot and two-thirds into your retirement pot. Your vested pot will be governed by the old retirement rules.
So what is the minimum tax per withdrawal in this two port system?
Hi, please note that the tax will be charged at marginal tax and will also depend on your tax profile with SARS. Unfortunately, we are unable to confirm the amount of tax SARS will charge you. You can however, send "Hi" to 0860 933 333 and use the Savings Pot calculator on Whatsapp 0860 933 333 to see the amount that could be available (seeding amount) as well as an estimate of the marginal tax applicable to your elected savings withdrawal.
Hi there, Savings Pot withdrawals are seen as “income” by SARS. SARS will apply the marginal income tax rate, which is the tax rate payable based on your current earnings at the time of the withdrawal, to the amount that you withdraw. In addition to the tax that you will pay on your Two-Pot withdrawal, SARS also requires that you pay any additional outstanding money that you may owe to SARS as well.
Old Mutual will pay out the amount of the withdrawal less the tax payable on the withdrawal and less any outstanding money that is owed to SARS.
How do i apply for the pot and know if I qualify to withdraw the funds
Hi Botshelo, individuals participating in retirement funds will generally need to be members of an approved retirement savings vehicle (like a pension or provident fund). This also includes retirement annuities. Please use the Savings Pot calculator on Whatsapp 0860 933 333 to see the amount that could be available (seeding amount) as well as an estimate of the marginal tax applicable to your elected savings withdrawal
Hi how do I apply two pot system cuz am struggling to get information
Hi, the Two-Pot Retirement system is a proposed change to improve financial security and encourage saving for retirement. Your retirement contributions will be split into two parts: a 'savings pot,' which is one-third of your contributions and can
be accessed before retirement if needed, and a 'retirement pot,' which is two-thirds of your contributions and will be preserved until you retire.
There will be a once off allocation to your Savings Pot of 10% of your existing fund value as of 31 August 2024 (capped at R30 000) in September 2024. You can only withdraw once in a tax year, i.e., between 1 March and 28 February each year. A minimum of R2 000 can be withdrawn; if you have less than R2 000 in the Savings Pot, you cannot withdraw.
Hi, thank you for reaching out to us.
Individuals participating in retirement funds will generally need to be members of an approved retirement savings vehicle (like a pension or provident fund). This also includes retirement annuities. Please use the Savings Pot calculator on Whatsapp 0860 933 333 to see the amount that could be available (seeding amount) as well as an estimate of the marginal tax applicable to your elected savings withdrawal
Can I withdraw 100% of my vested component contributions on 15 September 2024?
Hi there, thank you for engaging with us. The vested component can only be withdrawn upon resignation or retirement if the funds are coming from a pension or provident. If it is a retirement annuity policy, the vested component will remain under the same rules of accessing the funds at age 55 only.
@@oldmutual Thank you very much! Yes, I meant via resignation. Its clear now, I think most people were scared thinking the vested component will go to the retirement portion, so the seeding amount can also be withdrawn.
We are glad to have provided you with more clarity on the matter.
Is the invest money be affected by the new system ?what if you want to leave the organization are you going be able to take the old money with is ready there
Hello, Old rules will apply to your retirement savings accumulated as of 1 September.
You will still have access to some of your accumulated retirement funds (which will be in your vested pot) when you leave - one-third of your investment (as of 1 September) can be taken as cash.
You can also access what is in your savings pot if you leave after September 2024.
Hi will I be able to access my money if I resigns including the two third of retirement which is the vested pot after 1 March 2024? And what happens if I resign before 55 years after the inception of this bill. Will I receive my vested pot with one third, then two third that is generated after inception of this bill receive at retirement age? Can you please clarify these grey areas.
Hello, thank you for reaching out to us. Please DM us the following information (to protect your personal information) :
ID Number
Contact Number
Email Address
Hello, thank you for reaching out to us.
To find out more information about the two-pot system, kindly visit www.oldmutual.co.za/two-pot-retirement-system/
Hi there, the Two-Pot system has not been approved as yet. More details will be shared in the near future.
@@oldmutualI'm sorry but can you please answer the "what happens if I resign" part. Thank you.
Hello Gracy_Plaatjies.
You will still be able to withdraw from your employer-sponsored fund any savings you made before 1 September 2024. If you have not made a withdrawal in the tax year in which you lose your job, you will also be able to withdraw what is in your savings pot
What rules will apply to GEPF?
Hi there, we are, unfortunately, unable to provide full information on GEPF.
I just wanted to know if this 2 pot ystem affect or includes GEPF.
Good morning, more information can be found here: www.oldmutual.co.za/two-pot-retirement-system/
Hello,
The proposed two-pot system will apply to all defined benefit funds, including the GEPF. However, the calculation methods for the two pots will differ due to the unique nature of defined benefit funds. The allocation of contributions to the savings and retirement pots will be based on the member's pensionable service.
Hello,
The proposed two-pot system will apply to all defined benefit funds, including the GEPF. However, the calculation methods for the two pots will differ due to the unique nature of defined benefit funds. The allocation of contributions to the savings and retirement pots will be based on the member's pensionable service.
Is retirement the earliest retirement age still 55
Hi there, yes, that is correct.
Hello, that is correct.
Thank you
How can I withdraw from two pots
Hi there, you can only access your savings pot, which is capped at R30000, with the minimum being R2000.
Hello, as From 1 September 2024, your retirement contributions will be divided into two pots:
A savings pot where one-third of your contributions will be allocated and which you will be able to access before retirement if required, and
A retirement pot, where the remaining two-thirds will be kept for funding your income in retirement.
This pot will be preserved until the retirement date.
If I started worked in 2016 and my pension is R640000 am I qualify for it
Hi there, please use the Savings Pot calculator on Whatsapp 0860 933 333 to see the amount that could be available (seeding amount) as well as an estimate of the marginal tax applicable to your elected savings withdrawal
If I'm retrenched at work what will happen to my money.
Hi, thank you for getting in touch with us. it was understood that you would be paid from all three pots (Vested, Savings, and Retirement) upon retrenchment. However, the policymakers have clarified that retrenchments will be treated the same as resignations. This means that you will only be paid the balance in the Vested and Savings Pots as a cash benefit.
The balance in the Retirement Pot must be preserved within the Fund or transferred to another approved fund, with the restriction that you will only be able to access these amounts once you have retired.
Hi, it was understood that you would be paid from all three pots (Vested, Savings, and Retirement) upon retrenchment. However, the policymakers have clarified that retrenchments will be treated the same as resignations. This means that you will only be paid the balance in the Vested and Savings Pots as a cash benefit.
The balance in the Retirement Pot must be preserved within the Fund or transferred to another approved fund, with the restriction that you will only be able to access these amounts once you have retired.
What happens if i get fired from work
Hi there, your current retirement savings will not be impacted and will be governed by the old rules up to the Effective Date.
Hi there, The Two-Pot Retirement system proposes changes to South Africa's retirement savings to enhance financial security. It divides contributions into two pots: a "savings pot" for a lump sum at retirement (one-third of contributions) and a "retirement pot" for income during retirement (two-thirds). Members can access the savings pot before retirement, while the retirement pot is preserved until retirement.
Your current retirement savings will not be impacted and will be governed by the old rules up to the Effective Date.
Better not to sign/ accept it leave it that wei even if they put that money R30k do not touch or withdraw it up until u reach your retirement please this pot stores was wei bag stories during 1980 government of that time it's now operating finali😂 en implement GNU while other don't know rules of it 😂
Allegedly... Old mutual is just a scheme😢
We're sorry to hear that you feel that way. We take customer feedback seriously and would like to understand more about your experience. Can you please provide more details about what led you to this conclusion, so we can work to address any issues and improve our services? We are committed to providing the best possible experience for our customers and would appreciate the opportunity to make things right. Please feel free to message us privately on Twitter or Facebook.