Why YOU NEED to Withdraw From your Two-Pot Retirement System? 

The government could not get their hands on the 90 billion rand retirement funds legally. Now they have created a dream that is going to be a nightmare at retirement. By creating this 2 pot system they now can access the fund via tax they bring the only main beneficiary. Government is basically bankrupt thus being creative in tax revenue including not in adjusting the annual income tax brackets . They are not looking after the individuals interest.

In this example you paying 31.1% in tax to withdraw R25k. If you lucky you might only make that up after 3 years ( if you left that R25k in your pension it would have grown ). Only touch the 2 pot if its a matter of life or death, like if u starving for food or need and organ

Its been a while since i heard someone talking financial sense thats not for the faint hearted.

I get it👍guys stop jumping about the 15% it's an example, thts why she's saying do your research /see a financial advisor. If you choose this road remember you will be paying foreign tax, if you invest in companies like Tesla etc, which is offshore . so do research and when you are done, do research again just for good measure , remember it's your hard earned money not a give away present for someone.

Guys guys guys, think outside the box we are used to being abused by tax that's nothing new, now the real problem here is the fact that they take R30000 out of vested pot, put it in a saving pot, meaning this R30000 will not grow like the money in the vested pot over time you loosing thousands of Rands in interest if the money was in the vested pot whether you draw the money or not it makes no difference you are loosing.

You pay income tax before deductions and at time of pay out you pay mpre tax it is criminal ,we are being raped by our politicians and we just sit back and allow it ....there should be legislation in the constution preventing tripple taxing!

The 2 pot was likely put in place to get taxes.

You are so wise Lady kindly make a video and add companies for investments...l hear you. Money needs wisdom, good planning & discipline..thank you also pls advise with the retirement which companies are worth it...

I thought this was click bait, but you actually explained this beautifully. Definitely an option IF you don't have debt, you value offshore investing and you don't already have investments offshore and out of the constraints of Reg 28. Most important is to get the right advice for your personal situation. Basically, you're saying DIVERSIFY your investments 👍 But lets also be real. The majority of South Africans should absolutely NOT withdraw under almost any circumstance. I think the people you have in mind for this sort of scenario already have offshore diversification outside of Reg 28.

I will definitely withdraw and invest it on Satrix market

The benefit of contributing towards an RA helps with lowering ones income tax, in some cases up to 45% of contribution capped at 350k per annum. That's a 45% return. The savings can then be invested into a TFSA, which will also gain tax-free interest. There are TFSA which one can invest into higher interest ETFs, all tax-free. You could withdraw your 25k and invest it, but you'll be taxed on it further on the interest, so it doesn't make sense to get double charged on interest. People in South Africa are terrible at saving. An RA might be the only secure vehicle they can gain long-term wealth on. I would avoid withdrawing from my RA, given the tax benefit and long-term creation of wealth.

I'm definitely taking it.

This is for the huge risk takers aka gamblers. Achieving 15% per year is a mammoth task which would mean picking stocks or crypto and hoping these assets will be able to sustain their growth rates over the 20 year period. If R25k is less than 1% of your total retirement fund, I would consider taking that gamble.

To get a 15% return per annum is highly unlikely.please show me which fund in the last 5 years grew at 15% per annum.

Why can't we be allowed to withdraw enough to pay off home loans and other huge debts then in return we pay the money back to GEPF or any other fund.

Hi Yolanda thank you so much very informative.

You make a withdrawal today tomorrow or after 10 years. later The fact is you will be taxed eventually ,your money is put in that pot waiting to be taxed anytime you withdraw no matter when, Please don't discourage the poor to your advantage

Don’t touch it - Don’t withdraw. Tax implications will crucify you in the long run.

Saudia Arabia had decided not to renew it's petrodollar agreement with the US

The problem with all this is that this thing is pushed on us by force why are we not allow to choose this thing or not

Great to hear from an actual qualified FA operating in a SAn system and context..

You're too sharp! Thank you.

Government is scoring on tax this year . Many people withdrawing in Sept.

Thank u so much Yolanda so much clear now I can make a better decision

please don't stop making these videos 😭🙌

try to show your calc steps on how you get your answers

What happens if i do not touch anything from starting off with the first R30.000 withdrawal and wait for retirement age..Do both pots grow interest?. Is that best if i can stay without it? Thanks

Thanks. You got yourself a subscriber

There's no reference in the "invested a R100" so it doesn't make sense.

Its becomming irresponsible to leave too much in one's pension funds! Pension funds either own too much debt (which is failing), too many equities in an underperforming economy that is valued in a depreciating currency, or too much in foreign equities that are debt driven and overvalued. Times have changed!!!

Interesting , how much do advices cost

Can you direct me to a reputable tax practitioner

10% is too small.. the government will profit more..

With my Vested pot, why am I not allowed to invest it in Government Bonds and make 11.5% interest per annum!?

This is a terrible suggestion. In your example you will take a 31% knock. To get the R17,225 (R25,000 - tax of R7775) back to the R25,000 you started with you need to grow it by 45%. How many years is it going to take to do that? Terrible advice. If you have a long time before retirement, rather increase your exposure to as much foreign assets (equity and bonds) as allowed (45%). Remember there is no tax while invested in a retirement investment. Much better to do that and leave your current investments to continue to grow.

We will never have money because imagine over 20yrs you only have 200 which will be nothing after those yrs

Some of the best superinvestors on earth will be jumping for joy to get 15% growth over 20 years, and you're saying after fees? So gross return must be at the very least least 18%+ over the long term. This is Warren Buffet territory. The handful of funds on earth that has achieved this won't accept new clients and those that do have entry limits of millions of dollars. This is totally unrealistic.

You will still get taxed accordingly if you decide to withdraw when you retire

I've been unemployed since 2013 but I've still have my retirement annuity policy even though I don't contribute so please advise what's gonna happen. I'm still unemployed

What about interest earned on investments come tax session?

Betway & Aviator can triple that money in a couple of seconds

if not in hledger its BS

Surely SARS will tax me once I withdraw from my SMP500 investment

Too many suppositions and less facts

Where do u for goverment employees apply too withdraw

If you growing your money in s&p500 index fund is it better to buy the index in dollar or rands. In withdrawal of these grown funds will you be charged 25% cgt

What happens to your retirement pot if you decide to resign after September 2024.

Really Lady ... what crap are you selling the audience !!! You are not telling the audience the salient costs by investing their money in 'alternative' products !!!

Didnt understand 1 bit

Whats the best offshore investment for south Africans

To summarize this video . Its nonsense. The offshore investment scribbling doesnt show what tax you pay when withdrawing. So we should Go find an investment return thats high enough to recover the tax paid from withdrawing funds and then grow it through compunding. I love the phrase " you got to know the market " - investing off shore with net return of 15 % is almost impossible without an agressive high risk investment. Note high risk margin with possible loss. Tip : Provide literal example offshore investments thats safe. The audience you speaking too doesnt understand this and they not going to reach out to a broker to enquire if they dont. JSE explanation was on point. But thats the rationale about why the Rand is weak is right but why on earth would i invest offshore with higher interest gains but higher tax margin irrespective of age and status , on retirement i have a lower tax bracket in SA and tax free compunding with local RA occurs. Its the same thing . 😂 cancels each other out. Heres the right way. Find the number you confortable paying for RA after investing desired amount into a fund of choice. That way you can benifit from both.

I have a Tax loss of R60k and in a non tax resident with R0 income per year normally. Will i get my monies tax free?

On which planet are you getting 15%? And by your own explanation about growth minus inflation of say 6%, then you are implying that the growth is 21% to get 15% return (this is from your own calculation).

So if I decide not to withdraw and maybe in a year or two I leave my job will I be able to withdraw all my money

Where exactly would it be possible to invest at @15%??? That sounds a but farfetched for a R17k investment. Disclaimer: I'm asking to learn and not throwing shade.

What about service reduction?

I am withdrawing every scent I can, shame! The private sector has this habit of working us out of our jobs for no good reason other than wanting to get rid of you. That us what got me into debt as my case is still in the labour court. So give me my money 👏👏👏😂. I will deal with all else later when the times comes.

Been too broke for quite I’m taking what’s mines LOL 😂

I owe SARS anyway...

I’m wondering if I can make a yearly withdrawal and it towards my bond 🤔

Where do you get a 15% return

Is it wise to take it and build a property for rentals.

Where are you gonna get a nett return of 15%in any economy currently

Hi which investments that have double digit do you recommend?

Let's say i have a homeloan and i pay back R6000pm, will i benefit if i draw the maximum here, pay it on my homeloan and keep on paying R6000 on the homeloan?

Where are you getting a 15% nett return?

Pls help I need clarity when u decide to resign do u still get all your money

Higher rates = Higher risk.

If resign will I get both my vested and non vested amount, please help

Can I take all the money on both the two pot systems and start afresh?

Hi thanks if your have 5years working in the company can iget the two pots money?

Was there any test pilot done for these 2 crack pots ?

Yes but where will you get a 15%

Is it advisable to resign and start over so that your retirement funds don’t get affected

No, you should not touch it, fml, the nerve of some of you to tell people what to do, wtf who do you think you are???

If you withdraw from your pension you steal from your old self.

Even when you retire at 60, you will be taxed.

I retired October 2023, is it possible to change from the current institution where my retirement funds are to another?

Jeeez, just put it in crypto. You'd easily multiply that 5.2 time in 12 months or less😫

I'm already on pension so what happens to me and my pension fund scheme

How much tax will be dedicated when I withdraw my first R30k? Is the tax deducted from this R30k?

Hi Yolanda. I have two pension funds and am wondering if it will be possible to withdraw R30k from both of them at the same time.

This is terrible advice. You have tax-free compounding within the retirement fund. Why withdraw?

Rather speak to your licensed financial services provider and look at different funds rather than withdraw. Terrible advice so "advisors" just want your money dont ve scammed

Unrealistic scenario of 15% per annum.

Wow, this is such bad advice!

Voetsek we want money.