Two-pot system · 5 min read

The two-pot retirement system explained

[PLACEHOLDER ARTICLE — to be reviewed by Francois before publishing.]

Since 1 September 2024, contributions to South African retirement funds are split: one third goes to a savings pot you can access once a tax year, and two thirds to a retirement pot that stays invested until retirement.

Withdrawals from the savings pot are taxed at your marginal rate and reduce what you'll have later. Treat it as an emergency fund of last resort, not extra income.