Two pot application

The Two-Pot Retirement System is not something you “apply” for to be included in.

It is a mandatory change to South Africa’s retirement savings structure that automatically applies to almost all retirement fund members (pension, provident, and retirement annuity funds) from September 1, 2024.

You only need to take an active step (an “application”) if you want to make a withdrawal from the new Savings Pot.

Here is what you need to know:

1. Automatic Inclusion (No Application Needed)
From September 1, 2024, all your new retirement contributions are automatically split:

1/3 goes to the Savings Pot (accessible once per tax year).

2/3 goes to the Retirement Pot (preserved until retirement).

Your existing savings as of August 31, 2024, are moved to a Vested Pot.

A “seeding amount” (max R30,000) from your Vested Pot is automatically transferred to your Savings Pot to give you initial access.

2. How to “Apply” for a Withdrawal (If You Need the Money)
If you need to access the money in your new Savings Pot, you must follow a withdrawal process provided by your specific fund administrator:

Contact Your Fund/Administrator: Get in touch with your retirement fund administrator (e.g., Old Mutual, Sanlam, Alexander Forbes, GEPF, etc.).

Use Their Platform: They will have a specific process, usually involving:

An online portal (website or app).

A dedicated WhatsApp channel.

A specific withdrawal form.

Requirements: You will need to provide/confirm:

Your correct personal information.

Your valid Income Tax Reference Number (SARS).

Your bank details.

The withdrawal is generally subject to a minimum amount (usually R2,000) and will be taxed at your marginal income tax rate.

Action to take: Contact your specific retirement fund administrator for their exact withdrawal instructions and forms.