can you plz explain to me that when 30k removed from vested pot into savings pot also the money to the retirement pot will be deducted from the remaining R800k in the vested pot?
Wow beautiful presentation... U are gifted u hv made it so easy for me.... I hv 1 question tho, regarding the example u used, 830k into the vesto pot, if 10%goes to the savings which is 83k....and only 30 k is accessible what happens to the 80k remaining amount, does it sit ku savings pot and every mth is added with the 1/3 contribution.?
Hi Mapalo I am a 45yr old man who is on permanent medical boarding. Do you think it's wise for me to access my two pot funds.My pension is around 900k.
Thanks Mapalo. crystal clear, the middle man, will always score. Forget about the payment, every time the is salary run, taxman is there. That payout can work, for those who earning less. a driver;security guard etc. But for people who are on Boling budget, it won't work.
My question is that, in the event that I resign from my Employment and i am not going to any other employment but rather going into business. Can I access the full amount, or the money waits untill the "retirement age" ?
Thank you very much! I had the same question as you from day One. Since I have no intention of accessing the money in my savings pot, to me, it just sounds like a sure way to slow down the rate at which my retirement savings grow! By a third, in layman's view but way more in complex financial terms considering compound interest etc. I am just as eager for an answer and wonder why didn't they give us a choice to opt out of the savings pot altogether?
An access bond allows you the flexibility to not only make extra payments into your bond, but also withdraw those extra funds again whenever you need it. It’s an excellent way to reduce the interest charges on your bond and also helps to pay off your bond faster.
If you have retirement annuity is it not possible to invest this into your tax free savings account say for instance in easy equities and then add that 25k to that and gaining compound interest tax free?
Great topic, thank you ladies... It's interesting how I was so under pressure at some point wanting to buy property but almost all the time when I do the calculations Ithe answer is I can't afford. It was heavy on me until I accepted that I'm better off paying someone else's bond (to have a roof over my head) than having to stress and be depressed inside the property I can't afford for years & years. I have so much peace now
Hi. What happens if I resign at the age of 45 to start my business does that mean Im not going to get all my funds?wil i have to wait for retirement age to get the funds that I did not get because I was not at the retirement age?
Thank you mntakwethu for this clarity. I ve been working for 30 years, and I am 53 yrs old. Can I withdraw from my pension account and pay off my bond. I am struggling with
Sorry to hear about your struggles. As the lady was clarifying, come September, your savings pot will only have , at most R30 000. This amount will be taxed according to your tax rate and you end up getting 20 something thousand Rand. It won't pay off your bond and is not worth taking. Edit. Hang in there, early retirement, if you can afford it, is at 55 years in many companies. Try and speak to a financial planner/adviser. Also, perhaps you have other retirement savings separate, like from Sanlam or Old Mutual which will pay you when you reach 55 years old. Perhaps then you can combine these amounts and pay your bond. If you have a good, stable job, did you know you can approach you bond provider (bank) to extend the term and make your monthly repayments more affordable? Don't be discouraged. Get solid advice.
Your question @17:00 Investment funds have always included a mix of both risky and money market instruments, with retirement funds usually having a higher proportion of risky assets. Therefore, I believe they’ll have more room to invest in risky assets with the 2/3 contribution since withdrawals are no longer possible. The returns forgone by investing 1/3 in money market instruments will be offset by the benefits of long-term investments.
I had the same question and I'm not a finance person and know little about investments, however perhaps this strategy will only pay off and the losses be offset for people that are a quite a bit beyond 10 years to retirement. It is for this reason that I feel we should have been given the choice to opt out of the savings pot especially if we have 15 years or less to retirement. This group only loses, as the retirement pot will barely grow without the other third contributions sitting in savings pot. And then , the worst hit is that, upon retirement , we will pay increased taxes, if the savings pot is taxed at a marginal tax rate. ( Where prior it would have fallen into the R550 000 tax concession etc) It seems this group, into which I fall, (8 years to retirement) is badly hit by the changed system. Edit: Am I understanding correctly? Any advice, insights from you are welcome.
Thanks for this, but i need clarity - i have 400K right now and aged 34 years old, am i going to get my 370K as a withdrawal when i decide to resign from my employer in December 2024?
No one is answering this part of the two-pot system nor being fired or retrenchment and I'm livid. I work in a mentally stressful career and I do not think I will stay in it till retirement age. So I do plan to resign at some point so I want to know, will I get my money while I figure life out? Or want to use it to move to another country? Yho 😢
My understanding, and what the lady on the video appears to confirm, is that the money in the vested pot(in your case R370 000 ), are what you will get on resignation subject to tax under the old system. You may get your entire R370 000 as a R550 000 tax concession is applicable , if you haven't taken pension funds from a previous employer before and thus not used up any of the tax free allowance.
No chief you must resign before 1 September 2024 to access the full 400k subject to tax if it's after you will not access the bigger part of your money until retirement 😂
Thank you Mapalo for such a clear breakdown on a complex upcoming change. I have one query. In the event where someone is immigranting to another country and they resign from their employer in South Africa, are you going to be allowed to withdraw all your contributions (vested fund + 2-pots systems full funds contributed)? Or just the vested funds + 1/3 of 2-pots systems contributions? Thank you.
