WHAT IS A 2 POT RETIREMENT SYSTEM?
WHAT IS A 2 POT RETIREMENT SYSTEM? South Africa will see a major change in the retirement regime starting on the 1st of September 2024. It is a system which has come to be known as a two pot system, although it is actually a 3 pot system. This system comes into existence as a result of the intensive campaigning by the organized labour i.e Trade Unions mainly represented at the Nedlac platform. The major reason for this campaign which has ultimately resulted into the new retirement regime is to provide relief, financial relief to workers who are going through financial strain. The call to allow the workers to tap into their provident/pension funds started as far back as 2017, however, it intensified in 2020 during the Covid 19 Lockdown when the country came to a standstill and there was not much economic activity which meant a loss of earnings for the workers. Workers in South Africa are confronted by serious financial difficulties with some having their houses and cars rep