Firstly, hit the subscribe & like button AND please DO NOT SKIP the ads 🧡! Then, please note that withdrawal from your vested component depends on various factors including the type of retirement fund you have (e.g. if it’s a retirement annuity even if you leave your job you will not be able to withdraw from the vested savings unless you only have R15k saved in total at the time, are disabled/are suffering from a debilitating illness or you are not a tax resident of SA), and if your fund type allows you can only withdraw from your vested savings only if you are unemployed (i.e. you can not withdraw from your vested pot if you are still employed).
@@NamelyLastnamely yes, but they were taxed using the pension tax table. Now the savings pot will be taxed using marginal rates (much higher), while the vested pot will still be taxed using the pension tax table (both available on the SARS website) 😊
This was such a refreshing explanation, thank you. I have both an RA and a pension, and I’m not touching either because it feels like a trick by the government to boost their revenue and fund their increasing spending. I plan to retire at 56. 😅
Thank you very much sis❤️ I'm on pension fund and I'm planning to withdraw. I need to buy a stand for my parents in a different place. Where they live currently there is no service delivery, there are no roads and people struggle getting public transport and ambulance
I stumbled across this video of yours Yvonne, I'm with GEPF and i just wanted to thank you so much for explaining this. We were hearing so many conflicting stories about this. You have made this so much clearer. I do have one question though and i apologise of its a silly question but if you tale money from your saving pot do you have to pay it back? Or will they reduce your years? That is what we were told
You are so welcome! Glad this video is helpful. The answer to your question is no, you do not have to pay it back. However you may have to increase your contributions to recover the lost pensionable service caused by your withdrawal but that’s optional. This is only because GEPF is a defined benefit fund and withdrawal reduces your pensionable service in proportion to how much you withdraw. For example, if you withdraw all your savings pot savings every year which will for instance be 1/3 of all your total yearly contributions, that could lead to a proportional loss in months that is 4 out of the 12 months (which is equal to 1/3rd (i.e. 4/12) of the tax year) The fund will have to confirm the actual impact calculation for you but I hope this simple explanation helps.
Thank you so much for this video.. so one can only access the Vested Pot( Old Funds) once they lose their job or retire only? if they are part of the Retirement or Provident fund,.
Thanks for the well informed explanation in my case i have R730 000 in my vested pot and i need more than R30 000 for personal investment how should i work it out?
Good question, your retirement savings are already invested on your behalf to counter inflation so you can leave your savings untouched and wait for retirement. The goal is to have enough saved up to take care of yourself and your family after you retire. Withdrawing reduces your retirement savings.
So at retirement you can take 1/3 of your vested pot as cash and the rest will have to be placed in an annuity that will paid to you monthly. It will be taxed per the retirement tax tables.
Hello Sistas. Thank you so much for the explanations and my question is that I'm no longer working but have RA and am 54yrs old and my saving is about 60k or less, so how much will i be able to withdraw or can i withdraw the whole amount ? Please advise
Hello! So if you choose to retire at 55, you'll have the option to take your entire retirement savings in cash since they are below R165k; but if you continue with employment you can continue contributing to your RA and will only have access to withdraw from your svaings pot once a tax year.
Hi Yvonne, 2 questions 1. Will the vested pot grow annually? If not we will lose out on the annual compounding effect of an investment - retirement funds do not only grow based on contributions, but also as a result of returns on investment, the higher the amount on the retirement fund the more the returns? 2. If i lose my job at 45 as an example, i can't access my retirement pot until i am 55 years ? in essence, one can lose assets or live in abject poverty whilst their money is locked away on the retirement pot ?
Hi 👋🏾 Thanks for your great questions: 1. The vested pot will continue to grow as your underlying investments grow so you will not lose out on the compounded returns. You will just not be able to add more funds. 2. If you do not have an emergency fund or other financial nets, and you have an RA with a maxed out saving pot and no income protection cover, then that is likely. You’ll need to start building backup financial safety nets now to protect yourself from that. However, I believe not having a job doesn’t mean you lose your ability to generate income. As long as you are able bodied you will still be able to start your own small business or create other alternative sources of income with whatever you know or have. We need to remove the reliance on retirement savings.
Yes, the cap is meant to help us save more for retirement but they could have just let it be 10% of whatever you have already saved instead of capping that "10%" to R30k.
Hi very clear Yvonne my problem is how to get it in bank account the platform for gepfvdont work ask you for otp but they don't send it😢 really frustrating
what if you dont make yearly withdrawals for five years,does the 30k multiply by 5 or do you forfeit 30k per year if you dont withdraw.for me after five years of not withdrawing there should be 180000 available on year 6.
Hi Yvonne. Thank you. So if you have a preserver and made a withdrawal already in it.... Will you still be able to withdraw from the vested pot? Also does that mean one can make multiple withdrawals from different savings pots (preserver, pension) if you have more than one including from Vested preserver?
Hi! Well technically preservation funds are different from pension, provident and retirement annuities because you can't contribute new funds to them, so effectively the two-pot system will not apply given there would be no future contributions. In addition, since anyone with a preservation fund has the right to make a once-off withdrawal before retirement, if had not made a withdrawal, you could do so at any time before retirement. However, as you say you have already made a once-off withdrawal which technically means you can not access to remaining preservation funds again until retirement. I hope this is clear. Thank you so much for watching and the great question! All the best!
Best explanation...but I have a question...what will happen to someone who wants to immigrate to another country?Will she or he get all her money or his money including the money saved in retirement?
Excellent question! If you emigrate you will be allowed to withdraw all of your retirement savings. There are conditions that need to be met though so ask your fund for more details.
Hi. Great analysis. I have RA with insurance company for many years and I'm still working. That insurance company says i can withdraw. Now my question is, Can i withdraw both from the insurance company through Retirement annuity and from my normal savings pot at the same year?
Hi. My understanding of your question is that you have two retirement savings accounts and you would like to know if you can withdraw from both of them, and the answer is yes - because each fund/account you have will have its own pots including a savings pot.
The video was very informative thank, in my case I only need R20 000 & I don't believe I'll withdraw again until I'm in a tight Conor is that possible for the R20 000?
So a paid up RA means you left your previous employer but didn’t not transfer your RA to a new fund so you can not add new funds. My understanding is that the two pot set up will still be done so you can access your savings pot.
Yes, you will but you will be given access to 1/3 of the total in cash and the rest will have to be placed in an annuity to pay you monthly during retirement.
Great explanation. The one thing I was worried about before this video was if I resign in a year will I get all my money from the vested portion . According to this video il be able to get all my vested money (depending on tax etc ) … did I understand correctly?
Your funds will keep growing as your investments grow across all your 3 pots. When you decide to withdraw from your vested or savings pot you will reduce the amount available to you at retirement.
Well, you'll have way more in retirement savings as the underlying investments made by the fund on your behalf will (on average) grow every year so by retirement you have a large sum you can take as cash (1/3rd of your total savings) and as a 'salary' (2/3rd of your total savings which will be in your retirment pot). Use the Discovery Calculator to see the future impact of withdrawal and you'll understand what I mean.
Just a clarity question, the withdrawal is based on 12 months before you can withdraw again? In short, if one withdraws in September or November in 2024, can they withdraw again in March or April 2025?
Yes, you can withdraw again from March because the tax year is 1 March to 28 February. Effectively you can withdraw twice in a calendar year (which is 1 January to 31 December).
Question: If I have a pension fund worth R200000 with company A and the retirement annuity worth R120000 with company B. How much maximum do I qualify to withdraw? Can I withdraw R30000 from company A and R30000 from company B?
@@YvonneFreely If so does it mean I am starting from scratch or am I topping up on my RA. Currently my is at 600K and it indicates that I may have about 3.4m when I reach 65. Will taking the one third affect it's growth even when I will paying the premiums as before. Or am I starting a new RA.
Hi my sister. i was contributing to MIBFA provident fund until 2017 when i was promoted and moved to pension fund with a different institute. so, what will happen to my Mibfa Provident fund?
Hi Yvonne,from the vest pot if i withdraw 30k ir 10% where will the rest of my savings from the vest pot go bcoz after that u only talking about new contribution to the 2 pots after the 31st of august,,if i took 30k from 100k of vested pot,then whats happening to that 70k
[carreer advise] i have a bachelor's in economics and currently doing honours in finance and investment management .What are the best ways to find a job because I'm struggling with required experience in most vacancies?
Hi! I would start with graduate programs offered by the fund/investment management firms you would like to work for, and I would also search for Junior Investment Analyst roles that require little to no experience. I found attending investment industry events, for networking purposes, very useful too e.g. ABSIP events. I would also suggest you learn financial modelling, stay up to date with what's happening with companies listed on the JSE in different industries, major Private Equity or VC transactions/deals across Africa, and read company analysis reports online to prepare yourself for job opportunities that will come up. I have an investing fundamentals and financial modelling course in the pipeline so I will invite you to that when it goes live, if it helps. All the best!
Let’s say that you resign after taking the 2 pot system money. And they give you all the mine on your savings and vested pot.Does that mean you forfeit the one on retirement pot or you can still get that money once you reach 55? Even if by then you are not working.
hi great video ,so if i get retrenched and i have 20k on both savings and vested pot and i can not touch the retirement pot so i must live on 40k while looking for a another job ? what if i can't find another job till 55?
Apart from the additional UIF funds you can apply for, you would have to find alternative means to generate income like starting a business which might actually work out better for you in the long-run 🙂
If you have R130k in your pension fund you will only get 10% (R13k) transferred to your savings pot , and will be allowed to withdraw that R13k before tax and fees. If you wait then your savings pot will grow and you will be able to withdraw more later.
Can I withdraw from the vested pot from the 1st of September? I'm sorry I know you mentioned it but I just want to be sure. The only pot you cannot withdraw from is the Retirement Pot?
The vested pot can be accessed after 1 September but only if you lose your job. If you are still employed you can only access your savings pot once a tax year.
What if you resign from work or lose your job or the company you work for closes, You need funds to survive , 30k that's taxed will not help to survive. Can you get your full pension in such cases ?
I hear you, R30k before tax is not much. If you have a pension or provident fund and lose your job, you can access your vested pot and savings pot only but not your retirement pot. If you have an RA then you will have to wait until retirement to access your vested and retirement pot but you will have access to your savings pot once a tax year.
Hi. My u please say it clear because u talk about big salary can u just help if I have R30000 how is it going to be divided to those pots and how much will be in the savings
Certainly. If you have R30k then you’ll have R3k on your savings pot, R27k in your vested pot and R0 in your retirement pot at the beginning. Then every month from the end of September 2024, your future payments will got to your savings pot (33%) and retirement pot (67%). Does that help?
In the case of resignation or retrenchment, if you have a pension or provident fund, you will be able to withdrawal funds in your vested pot put savings pot (once a tax year) but not from your retirement pot. You will have access to the retirement pot after you retire but should you pass away before then then the funds will be given to your beneficiaries.
If I owe SARS but have made arrangement with them like iam paying them every month , are they still going to deduct the balance from two pot if I withdraw?
Your fund will share the application instructions which will likely require you to fill in and submit a form on their app or website. Check on the website from the 1st if you have not heard anything from your fund.
Thanks for clarity Yvonne. So if they'll keep max R30k on the savings, its means I can only withdraw R30k. Does it mean R30k every Tax year, or only the first withdrawal? What if next year, I have e.g R1m, can I withdraw the whole available funds on the savings pot?
Excellent question! The initial R30k is called ‘seed capital’ into your savings pot to get you started. It is not a cap to how much you can withdraw at a time. If you don’t withdraw it every month it will grow by 1/3 of all your future contributions. There is NO LIMIT to how much you can withdraw from your savings pot you just have to have a minimum of R2k in the savings pot. So if you leave your savings pot to grow and it reaches R1m you can withdraw the full R1m but only once per tax year i.e. you can’t take 500k in July then another 500k in September of the same tax year. When your account goes to zero after the withdrawal, you start building up your savings pot again and once it goes above R2k you can withdraw again once in the next tax year. Let me know if this clarifies it 🤗
ok let's say you have left your previous job and you had a provident fund yet to decide what to do either to withdraw or move to a preservation fund. Currently if you withdraw you are taxed at 20%, does it mean that after 1 September 2024. If one decide to withdraw one may be taxed according to the amount falls in?
Great question! The tax rate on the vested component will be per the existing retirement tax tables but the savings pot withdrawal will be at the personal income tax rates (the marginal rates).
Well, with your RA you will have to wait for 55 for you to access/withdraw the majority of the retirement savings you have already saved up that will be placed in your vested pot, plus any new retirement savings that will be placed in your retirement pot, even if you resign/get dismissed. You will still be able to withdraw 10% of your old retirement savings capped at R30k placed in your savings pot though. For your Pension Fund, if you leave employment even after the two pot system starts you will be able to access vested (old) retirement savings plus your savings pot but nothing from your retirement pot. Essentially, if you have 1. R400k in your RA and R400k in your Pension fund and 2. you are still employed you will only be able to withdraw R60k (based on the R30k cap for each fund) before marginal rate tax and any fund administration fees. You can use the Old Mutual Discovery calculator to see the after-tax estimate based on your circumstances. Hope this helps 😊
This whole thing is a scam to suppress the most impoverished. You will never get that money, Even if you get fired at work or arrested where you won't find work easily. If you wanna use that money to uplift yourself, khohlwa forget, you will go hungry with all business ideas in your head, with lots of money that could help, unfortunately all those dreams will wait until you are 55 years
I'm worried when they say use this money for emergency because emergency can happen anytime a while on emergency how long will this money take to come out😢
Yes, emergencies are unpredictable and can happen more than once during the tax year. I suggest concurrently building up an emergency fund so you do not have to rely on the savings pot or debt.
Yes, you have to go on your fund’s website or the app to request withdraw. Your fund will also give you all the information and assistance you need to complete the withdrawal process.
Thank you for the information. I have a question about unclaimed funds in the GEPF. Are they also put in these pots or can you just make a claim as you would have prior to this two pot system
for someone who has just started on the job and the pension fund has not reached 30k yet does it mean he /she won't be able to withdraw any money since the maximum that you should have is 30k?
If you’ve just started working, your fund will transfer your 10% even if it is R200, then after that your savings pot will grow with 1/3rd of all your future contributions. Once you reach the minimum threshold of R2k you will then be able to withdraw - once per tax year
Great question! So if you have a pension or provident fund then yes you can still withdraw all your money from your vested pot after you resign (from what I have understood from the various fund managers). You will also only be able to withdraw once per tax year from your savings pot as it accumulates. However you will not be able to withdraw from your retirement pot. Essentially, yes you can get all your old savings plus whatever is in your savings pot (above R2k) but no, you can not withdraw any new savings placed in your retirement pot. Hope that helps 🙌🏾
No, only R20k (10% of the R200k) will be transferred to your savings pot as a once off transfer. Afterwards 33% of all your future contributions will be put/added to your savings pot as well. So your initial R20k will keep growing every month.
In addition to the free resources/books offered by the CFA Institute when you register: www.cfainstitute.org/programs/cfa/charter , I have used the Kaplan Schweser for study materials since Level 1, found here: www.schweser.com/cfa?&gad_source=1&gclid=CjwKCAjwoJa2BhBPEiwA0l0ImIl16EikjwoAsTVQItaslY3473vmIwgAvI6oe0E_oJLyBt4xOf_m6xoC2aUQAvD_BwE&gclsrc=aw.ds .
Hi Yvonne say for instant I hve R100000 provident fund how much can I withdraw from that amount and r u allowed to withdraw the whole amount or just 10%
So how do YOU see that your old provident fund is On RA ? Im lost now ! Like an example me i have only provident fund that they deduct on old rule so my worry is to lose it also while i hear dat it will apply old rule stay on vested pot ! So wat do you mean when you say if your money on vested pot is RA you will not allowed to drow till you rich your retirement, so if i lose my job maybe next year i will raither join gangster 😭 cz my money has been lock even the old money💔
You will never lose your retirement savings. All your old retirement savings will be placed in the vested pot and will be accessible according to the fund rules. You can confirm with your fund what type of retirement fund you have but it seems you had a provident fund and not an RA (retirement annuity).
If you are still employed you will get access to only 10% which is R3.5k in your savings pot. I propose you find a side hustle that could help you increase your income to pay of the debts.
I want to know whats happening to the rest of my old savings,like pension and provident fund if only take 10 percent of it,whats happening to the 90percent of it coz now after the 31st we will be talking about new contribution to the new 2pots,whats happening to my old funds
Good Evening everyone Kindly I would like to know if, I hbae R70000, I will get R30000 and annually is R88560 it means my tax bracket is 18%, so it will be R30000 × 18%=5400 , then R30000-5400=24600 that I will receive in my bank account and the other R40 000 will remain inside vested account?
Hi sesterr what happens if you are under a contract that expires after few years from now and you contribute to pansion fund?what happens if i dont renew??
Hi! As long as you are contributing towards retirement this reform affects you, and after your contract ends and you are unemployed you can still access your savings pot once per tax year and your vested pot funds. However, your retirement pot will be locked until you retire.
![[isiZulu Version] Yini i-Retirement Two Pot System ? 🇿🇦 || HOW To Withdraw || South African Tax Laws](http://i.ytimg.com/vi/WuS99sxCZrk/mqdefault.jpg)
![[isiZulu Version] Yini i-Retirement Two Pot System ? 🇿🇦 || HOW To Withdraw || South African Tax Laws](/img/tr.png)
Firstly, hit the subscribe & like button AND please DO NOT SKIP the ads 🧡!
Then, please note that withdrawal from your vested component depends on various factors including the type of retirement fund you have (e.g. if it’s a retirement annuity even if you leave your job you will not be able to withdraw from the vested savings unless you only have R15k saved in total at the time, are disabled/are suffering from a debilitating illness or you are not a tax resident of SA), and if your fund type allows you can only withdraw from your vested savings only if you are unemployed (i.e. you can not withdraw from your vested pot if you are still employed).
Thank you, you are a STAR.
@YvonneFreely hi there just a question about withdrawals. Previous to the 2 pot system was withdrawals from the fund subject to tax as well?
@@NamelyLastnamely yes, but they were taxed using the pension tax table. Now the savings pot will be taxed using marginal rates (much higher), while the vested pot will still be taxed using the pension tax table (both available on the SARS website) 😊
@@itumelengricharddoctorbany6315 thanks, glad this is helpful! 🙏🏾
Yvonne, you're about the only person who explained this in a way that all of us can fully understand. Bravo
I’m really glad it’s helpful. Thanks so much for watching 🙌🏾
This was such a refreshing explanation, thank you.
I have both an RA and a pension, and I’m not touching either because it feels like a trick by the government to boost their revenue and fund their increasing spending. I plan to retire at 56. 😅
Awesome! So glad it was helpful! That’s a good decision 🙌🏾
Can i withdraw this R30k every year if I need to do so
Awesome video, you have been more helpful and informative than the representatives of most providents
Happy to hear that! Glad it’s useful! 🙌🏾
Best explanation I've heard on this system. Thanks Sis Yvonne!
You are so welcome! Let me know if you have any additional questions! 🙌🏾
Tha ks for the clarity 😊
I resigned Feb and withdrew 73k surprisingly sars did not tax it so I won't be withdrawing anything now.
Nice! So you get to start afresh if you decide to get another job!
Thank you Yvonne. Yours is arguably the best explanation I've had so far on the two pot retirement system. Excellent and keep it up.
Thanks! Glad it was helpful! 🙌🏾🙌🏾🙌🏾
You so patient with this, i admire that. Even for some slow learners like us we understand fully 👌🏾
Thanks for the feedback! I’m so glad it’s helpful and inclusive.
Listen, babes, your explanation of this system is very demure, very cutsie, very mindful! The clarity is everything! Thank you, sisi.
Why thank you 🙏🏾 You just made me giggle! 🤭
Thank you for simplifying the 'Two-Pot System '
It’s a pleasure! More like the ‘three-pot system’ for a long time 😅
So much clarity you provided on this video, thank you for sharing your knowledge...now I know how to treat my RA 🙏
Wonderful! Glad it helped. I have an RA too so we’re in the same boat. All the best! 🙌🏾
Thanks a lot now I can surely say i fully understand this two pot system
You are most welcome! 🧡
The best explaination i have seen so far....thank you for the Insights😊😊
So glad! Thanks for watching and the feedback, please consider sharing this video with your friends or colleagues 🙌🏾
This was extremely helpful, you’re a star. Thank you❤️
You're so welcome! Glad it’s useful! 🧡
Perfectly explained.. Thank you
Glad it‘s helpful! 🙌🏾
This is the best explanation ever
So glad you found it helpful!
I just subscribed... you have explained this so well♥
Thanks for subbing! Welcome to the Free Squad! 🧡🤗
Well explained! Thank you Yvonne
Glad it’s helpful! 🧡
Thanks dear, informative n helpful.
My pleasure! 😊
Thank you very much sis❤️ I'm on pension fund and I'm planning to withdraw. I need to buy a stand for my parents in a different place. Where they live currently there is no service delivery, there are no roads and people struggle getting public transport and ambulance
Thanks for watching and also sharing! I really understand your situation and I am wishing you all the very best!
This applicable for government imployee
Yes, this affects everyone who contributes towards retirement regardless of the fund.
Best explanation ,thank you❤
You're welcome 😊 So glad it's helpful!
Well articulated information
Thanks for the feedback! I’m glad it’s useful.
Very clear information
Glad it was helpful! All the best 🙌🏾
Thanks for clarifications.
You're welcome ☺️
Sho suster thanks for the video... One question if I may... Manje if my taxable income is under 95,750... 0% vele ?
Yes, that’s the tax threshold so 0% tax 🙌🏾
Hi Yvonne please explain what happens if I owe sars now? Should I withdraw from my 2 pot is sars going to deduct the money I owe the?
They will deduct their money before you get your money, but I believe if you have an arrangement they might not.
I stumbled across this video of yours Yvonne, I'm with GEPF and i just wanted to thank you so much for explaining this. We were hearing so many conflicting stories about this. You have made this so much clearer. I do have one question though and i apologise of its a silly question but if you tale money from your saving pot do you have to pay it back? Or will they reduce your years? That is what we were told
You are so welcome! Glad this video is helpful.
The answer to your question is no, you do not have to pay it back. However you may have to increase your contributions to recover the lost pensionable service caused by your withdrawal but that’s optional.
This is only because GEPF is a defined benefit fund and withdrawal reduces your pensionable service in proportion to how much you withdraw. For example, if you withdraw all your savings pot savings every year which will for instance be 1/3 of all your total yearly contributions, that could lead to a proportional loss in months that is 4 out of the 12 months (which is equal to 1/3rd (i.e. 4/12) of the tax year)
The fund will have to confirm the actual impact calculation for you but I hope this simple explanation helps.
@@YvonneFreely thank you so very much for your quick response
Thanks for the info.
How do one withdraw the funds
Perfectly Simplified and Yvonne'zed❤
Thanks 🙌🏾 Glad it’s helpful! See you again on Sunday, I’ll be talking about making money!
Thank you so much for this video.. so one can only access the Vested Pot( Old Funds) once they lose their job or retire only? if they are part of the Retirement or Provident fund,.
You’ve got it! 🤗 Thanks for watching! See you in the comments on the next video! 🙌🏾
You explain it clearly
Thank you! Glad it was useful! 🧡🙌🏾
Thanks for the well informed explanation in my case i have R730 000 in my vested pot and i need more than R30 000 for personal investment how should i work it out?
What about the inflation effect, will it be wise to leave it untouched or investing it?
Good question, your retirement savings are already invested on your behalf to counter inflation so you can leave your savings untouched and wait for retirement.
The goal is to have enough saved up to take care of yourself and your family after you retire. Withdrawing reduces your retirement savings.
i am not sure if i missed it .please explain what will happen to the vested pot at retirement age..will it come as a lampsum or in a from of salary
I did not get that part also
You can take 1/3 of your vested pot as cash and the rest will have to be placed in an annuity that will paid to you monthly (like a salary).
So at retirement you can take 1/3 of your vested pot as cash and the rest will have to be placed in an annuity that will paid to you monthly. It will be taxed per the retirement tax tables.
Hello Sistas.
Thank you so much for the explanations and my question is that I'm no longer working but have RA and am 54yrs old and my saving is about 60k or less, so how much will i be able to withdraw or can i withdraw the whole amount ?
Please advise
Hello! So if you choose to retire at 55, you'll have the option to take your entire retirement savings in cash since they are below R165k; but if you continue with employment you can continue contributing to your RA and will only have access to withdraw from your svaings pot once a tax year.
Hi Yvonne, 2 questions
1. Will the vested pot grow annually? If not we will lose out on the annual compounding effect of an investment - retirement funds do not only grow based on contributions, but also as a result of returns on investment, the higher the amount on the retirement fund the more the returns?
2. If i lose my job at 45 as an example, i can't access my retirement pot until i am 55 years ? in essence, one can lose assets or live in abject poverty whilst their money is locked away on the retirement pot ?
Hi 👋🏾 Thanks for your great questions:
1. The vested pot will continue to grow as your underlying investments grow so you will not lose out on the compounded returns. You will just not be able to add more funds.
2. If you do not have an emergency fund or other financial nets, and you have an RA with a maxed out saving pot and no income protection cover, then that is likely. You’ll need to start building backup financial safety nets now to protect yourself from that.
However, I believe not having a job doesn’t mean you lose your ability to generate income. As long as you are able bodied you will still be able to start your own small business or create other alternative sources of income with whatever you know or have.
We need to remove the reliance on retirement savings.
@@YvonneFreelythanks my sister
You’re so welcome 🙌🏾
Not fair that they even limit the 30000 if u have more it n still tax it .
Yes, the cap is meant to help us save more for retirement but they could have just let it be 10% of whatever you have already saved instead of capping that "10%" to R30k.
How long takes ukuthola Mali if uyenzile application?
2-4 weeks 🙌🏾
@@YvonneFreely thanks Yvonne🙏
Well explained 👏🏿👏🏿👏🏿
I'm so glad it's useful! Thanks 🙌🏾
Hi very clear Yvonne my problem is how to get it in bank account the platform for gepfvdont work ask you for otp but they don't send it😢 really frustrating
Can you get from provident savings if you resigned instead of getting fired in cpt
Hie Yvonne....... clarify to me for foreign nationals working in S.A and wat happens when i decide to go back home....
what if you dont make yearly withdrawals for five years,does the 30k multiply by 5 or do you forfeit 30k per year if you dont withdraw.for me after five years of not withdrawing there should be 180000 available on year 6.
Hi Yvonne. Thank you. So if you have a preserver and made a withdrawal already in it.... Will you still be able to withdraw from the vested pot?
Also does that mean one can make multiple withdrawals from different savings pots (preserver, pension) if you have more than one including from Vested preserver?
Hi! Well technically preservation funds are different from pension, provident and retirement annuities because you can't contribute new funds to them, so effectively the two-pot system will not apply given there would be no future contributions.
In addition, since anyone with a preservation fund has the right to make a once-off withdrawal before retirement, if had not made a withdrawal, you could do so at any time before retirement. However, as you say you have already made a once-off withdrawal which technically means you can not access to remaining preservation funds again until retirement.
I hope this is clear. Thank you so much for watching and the great question! All the best!
Best explanation...but I have a question...what will happen to someone who wants to immigrate to another country?Will she or he get all her money or his money including the money saved in retirement?
Excellent question! If you emigrate you will be allowed to withdraw all of your retirement savings. There are conditions that need to be met though so ask your fund for more details.
Hi. Great analysis. I have RA with insurance company for many years and I'm still working. That insurance company says i can withdraw. Now my question is, Can i withdraw both from the insurance company through Retirement annuity and from my normal savings pot at the same year?
Hi. My understanding of your question is that you have two retirement savings accounts and you would like to know if you can withdraw from both of them, and the answer is yes - because each fund/account you have will have its own pots including a savings pot.
@@YvonneFreely Well understood. I appreciate ma'am.
Awesome! Glad I could assist. All the best 🙌🏾
Thanks cc Yvonne
You are so welcome!
The video was very informative thank, in my case I only need R20 000 & I don't believe I'll withdraw again until I'm in a tight Conor is that possible for the R20 000?
Thanks! Glad it’s useful. I like your plan - don’t withdraw more than you need! 🙌🏾
Hi Yvonne.. Can you please clarify on RA that is paid up and benefits are non vested
So a paid up RA means you left your previous employer but didn’t not transfer your RA to a new fund so you can not add new funds. My understanding is that the two pot set up will still be done so you can access your savings pot.
Hi,what to do if u struggle to log in,and can't get help from Sanlam
how do you withdraw if you work as a security officer?
If you already 60 and plan to retire will you have access to withdraw in all pots? Any pros and con's ?
Yes, you will but you will be given access to 1/3 of the total in cash and the rest will have to be placed in an annuity to pay you monthly during retirement.
@@YvonneFreely thank you kindly for your advice. It's more enlightening
It's a pleasure, glad I could help.
What's happened if I pass away while I'm getting my pay out monthly do it falls away
Your funds will be given to your beneficiaries 😊
Great explanation. The one thing I was worried about before this video was if I resign in a year will I get all my money from the vested portion . According to this video il be able to get all my vested money (depending on tax etc ) … did I understand correctly?
Yes, that’s if you have a pension or provident fund. If it’s an RA you will not be able to until retirement 😊
@@YvonneFreely thanks
You're welcome!
The valid point is to let it build up, then withdraw and invest in business to generate other sources of income .
Straight up! 👏🏾
You are talking a lot of sense,that's my thinking as well.Rather, withdraw and push projects .
🙌🏾🙌🏾🙌🏾 All the best 🧡
What happens when I retire, 6 months down the line, will I get money
Will that amount be available immediately after withdrawal or there are some terms and conditions as always?
The amount will take time to reflect in your account because of the fund administration & SARS processes. It could take a couple of weeks or months.
H!Yvonne I want to know how much I have to grow?
Good Evening My sister
Kindly I would like to know if I don't take it at all what is going to happen in that case.
Kind Regards
Adam Moos
Your funds will keep growing as your investments grow across all your 3 pots.
When you decide to withdraw from your vested or savings pot you will reduce the amount available to you at retirement.
@@YvonneFreely noted with thanks 🙌
Thanks Yvonne what happens if i don't withdraw at all and wait for the retirement age.
Well, you'll have way more in retirement savings as the underlying investments made by the fund on your behalf will (on average) grow every year so by retirement you have a large sum you can take as cash (1/3rd of your total savings) and as a 'salary' (2/3rd of your total savings which will be in your retirment pot).
Use the Discovery Calculator to see the future impact of withdrawal and you'll understand what I mean.
Thank you ❤
You're welcome, glad it’s useful😊
Just a clarity question, the withdrawal is based on 12 months before you can withdraw again?
In short, if one withdraws in September or November in 2024, can they withdraw again in March or April 2025?
Yes, you can withdraw again from March because the tax year is 1 March to 28 February. Effectively you can withdraw twice in a calendar year (which is 1 January to 31 December).
Very good.
Thanks! Glad you found it helpful! 🤗
Question: If I have a pension fund worth R200000 with company A and the retirement annuity worth R120000 with company B.
How much maximum do I qualify to withdraw? Can I withdraw R30000 from company A and R30000 from company B?
You can withdraw R20k from A and R12k from B before tax and fund fees.
I will be 55 in October. I just need to know if can I take my 1 third on the RA and continue paying until 65
Good question. Yes, you will!
@@YvonneFreely
If so does it mean I am starting from scratch or am I topping up on my RA. Currently my is at 600K and it indicates that I may have about 3.4m when I reach 65.
Will taking the one third affect it's growth even when I will paying the premiums as before. Or am I starting a new RA.
Morning
Thank you ❤
Such a pleasure! Glad it’s useful.
What happens when a person belongs to 2 or more funds? Can you withdraw from the different funds individually?
Yes, you will have 2 or more savings pots too because this is applicable to each fund
Hi my sister. i was contributing to MIBFA provident fund until 2017 when i was promoted and moved to pension fund with a different institute. so, what will happen to my Mibfa Provident fund?
You will have the pots set up for each fund/account, so you will get 10% from each (max. R30k)
Hi Yvonne,from the vest pot if i withdraw 30k ir 10% where will the rest of my savings from the vest pot go bcoz after that u only talking about new contribution to the 2 pots after the 31st of august,,if i took 30k from 100k of vested pot,then whats happening to that 70k
Good question! The old funds will be kept in a 3rd pot called the vested pot and will grow over time as the underlying investments grow.
[carreer advise] i have a bachelor's in economics and currently doing honours in finance and investment management .What are the best ways to find a job because I'm struggling with required experience in most vacancies?
Hi! I would start with graduate programs offered by the fund/investment management firms you would like to work for, and I would also search for Junior Investment Analyst roles that require little to no experience. I found attending investment industry events, for networking purposes, very useful too e.g. ABSIP events. I would also suggest you learn financial modelling, stay up to date with what's happening with companies listed on the JSE in different industries, major Private Equity or VC transactions/deals across Africa, and read company analysis reports online to prepare yourself for job opportunities that will come up.
I have an investing fundamentals and financial modelling course in the pipeline so I will invite you to that when it goes live, if it helps. All the best!
Let’s say that you resign after taking the 2 pot system money. And they give you all the mine on your savings and vested pot.Does that mean you forfeit the one on retirement pot or you can still get that money once you reach 55? Even if by then you are not working.
You will still get the money in your retirement pot only when you retire even after you have exhausted your vested and savings pot funds.
hi great video ,so if i get retrenched and i have 20k on both savings and vested pot and i can not touch the retirement pot so i must live on 40k while looking for a another job ? what if i can't find another job till 55?
Apart from the additional UIF funds you can apply for, you would have to find alternative means to generate income like starting a business which might actually work out better for you in the long-run 🙂
Hi...i have been watching yiur vedio now for example if i have R130k on my pension fund,then i withdraw R30k how much will i get ...??
If you have R130k in your pension fund you will only get 10% (R13k) transferred to your savings pot , and will be allowed to withdraw that R13k before tax and fees. If you wait then your savings pot will grow and you will be able to withdraw more later.
Do you have to register to withdraw or is it just as normal like now?😮
You will just have to submit a withdrawal request via your fund’s website or app or any other options/ methods they provide.
Can I withdraw from the vested pot from the 1st of September? I'm sorry I know you mentioned it but I just want to be sure.
The only pot you cannot withdraw from is the Retirement Pot?
The vested pot can be accessed after 1 September but only if you lose your job. If you are still employed you can only access your savings pot once a tax year.
@@YvonneFreely Oh ok thank you so much 🙏🏾
What if you resign from work or lose your job or the company you work for closes,
You need funds to survive , 30k that's taxed will not help to survive.
Can you get your full pension in such cases ?
I hear you, R30k before tax is not much. If you have a pension or provident fund and lose your job, you can access your vested pot and savings pot only but not your retirement pot. If you have an RA then you will have to wait until retirement to access your vested and retirement pot but you will have access to your savings pot once a tax year.
Hi. My u please say it clear because u talk about big salary can u just help if I have R30000 how is it going to be divided to those pots and how much will be in the savings
Certainly. If you have R30k then you’ll have R3k on your savings pot, R27k in your vested pot and R0 in your retirement pot at the beginning.
Then every month from the end of September 2024, your future payments will got to your savings pot (33%) and retirement pot (67%). Does that help?
Can you explain in matter of resigning، retrenchment and death of the employee. What happens to Retirement money as third pot
In the case of resignation or retrenchment, if you have a pension or provident fund, you will be able to withdrawal funds in your vested pot put savings pot (once a tax year) but not from your retirement pot. You will have access to the retirement pot after you retire but should you pass away before then then the funds will be given to your beneficiaries.
If I owe SARS but have made arrangement with them like iam paying them every month , are they still going to deduct the balance from two pot if I withdraw?
I am not certain about this one so I suggest giving SARS a call to confirm. In normal circumstances they would deduct the full amount.
I want to apply for early retirement at 58 can I get all my money?
How are we going to withdraw is there any forms to fill
Your fund will share the application instructions which will likely require you to fill in and submit a form on their app or website. Check on the website from the 1st if you have not heard anything from your fund.
Thanks for clarity Yvonne. So if they'll keep max R30k on the savings, its means I can only withdraw R30k. Does it mean R30k every Tax year, or only the first withdrawal? What if next year, I have e.g R1m, can I withdraw the whole available funds on the savings pot?
Excellent question! The initial R30k is called ‘seed capital’ into your savings pot to get you started. It is not a cap to how much you can withdraw at a time. If you don’t withdraw it every month it will grow by 1/3 of all your future contributions.
There is NO LIMIT to how much you can withdraw from your savings pot you just have to have a minimum of R2k in the savings pot. So if you leave your savings pot to grow and it reaches R1m you can withdraw the full R1m but only once per tax year i.e. you can’t take 500k in July then another 500k in September of the same tax year.
When your account goes to zero after the withdrawal, you start building up your savings pot again and once it goes above R2k you can withdraw again once in the next tax year.
Let me know if this clarifies it 🤗
We were told from next year minimum is 2000 but no maximum amount ĺ
Yes, that's right.
@@YvonneFreely 1000% clear, thank you so much for responding.
You're welcome, glad I could help!
ok let's say you have left your previous job and you had a provident fund yet to decide what to do either to withdraw or move to a preservation fund. Currently if you withdraw you are taxed at 20%, does it mean that after 1 September 2024. If one decide to withdraw one may be taxed according to the amount falls in?
Great question! The tax rate on the vested component will be per the existing retirement tax tables but the savings pot withdrawal will be at the personal income tax rates (the marginal rates).
@@YvonneFreely Thanks for your answer
You're so welcome. Here to help.
Well I have both RA and Pension Fund. I would like to withdraw R150K from my PF to assist in the project I'm busy with😊
Well, with your RA you will have to wait for 55 for you to access/withdraw the majority of the retirement savings you have already saved up that will be placed in your vested pot, plus any new retirement savings that will be placed in your retirement pot, even if you resign/get dismissed. You will still be able to withdraw 10% of your old retirement savings capped at R30k placed in your savings pot though.
For your Pension Fund, if you leave employment even after the two pot system starts you will be able to access vested (old) retirement savings plus your savings pot but nothing from your retirement pot.
Essentially, if you have 1. R400k in your RA and R400k in your Pension fund and 2. you are still employed you will only be able to withdraw R60k (based on the R30k cap for each fund) before marginal rate tax and any fund administration fees.
You can use the Old Mutual Discovery calculator to see the after-tax estimate based on your circumstances. Hope this helps 😊
This whole thing is a scam to suppress the most impoverished.
You will never get that money,
Even if you get fired at work or arrested where you won't find work easily.
If you wanna use that money to uplift yourself, khohlwa forget, you will go hungry with all business ideas in your head, with lots of money that could help, unfortunately all those dreams will wait until you are 55 years
It's a tough one but hopefully we will get it
I'm worried when they say use this money for emergency because emergency can happen anytime a while on emergency how long will this money take to come out😢
Yes, emergencies are unpredictable and can happen more than once during the tax year. I suggest concurrently building up an emergency fund so you do not have to rely on the savings pot or debt.
Good morning,so in vested component what happens with my employer's contribution?iis it going back to him or stays in my vested component?
Hi 👋🏾 It stays in your vested pot.
@@YvonneFreely Thanks very much
It’s such a pleasure 🙌🏾
How do I withdraw my Provident fund? Clarify should I I go to my Provident fund scheme?
Yes, you have to go on your fund’s website or the app to request withdraw. Your fund will also give you all the information and assistance you need to complete the withdrawal process.
@@YvonneFreelythanks for the insights 😊
Thank you for the information. I have a question about unclaimed funds in the GEPF. Are they also put in these pots or can you just make a claim as you would have prior to this two pot system
This affects every fund including GEPF, and everyone who contributes towards retirement 🤗
Thank you ❤
You're welcome 🤗
Thanks
Pleasure!
for someone who has just started on the job and the pension fund has not reached 30k yet does it mean he /she won't be able to withdraw any money since the maximum that you should have is 30k?
If you’ve just started working, your fund will transfer your 10% even if it is R200, then after that your savings pot will grow with 1/3rd of all your future contributions. Once you reach the minimum threshold of R2k you will then be able to withdraw - once per tax year
@@YvonneFreely thank you dear
Such a pleasure 🙌🏾
What if lost my job I am going to get all money or I am going to wait 55 year to get my money.
Great question! So if you have a pension or provident fund then yes you can still withdraw all your money from your vested pot after you resign (from what I have understood from the various fund managers). You will also only be able to withdraw once per tax year from your savings pot as it accumulates. However you will not be able to withdraw from your retirement pot.
Essentially, yes you can get all your old savings plus whatever is in your savings pot (above R2k) but no, you can not withdraw any new savings placed in your retirement pot. Hope that helps 🙌🏾
So if I have like R 200 000 in my Provident fund is 33% of it will be deducted to my savings or?
No, only R20k (10% of the R200k) will be transferred to your savings pot as a once off transfer. Afterwards 33% of all your future contributions will be put/added to your savings pot as well. So your initial R20k will keep growing every month.
What are the cost of CFA study materials and books? this information I'm not getting it anywhere
In addition to the free resources/books offered by the CFA Institute when you register: www.cfainstitute.org/programs/cfa/charter , I have used the Kaplan Schweser for study materials since Level 1, found here: www.schweser.com/cfa?&gad_source=1&gclid=CjwKCAjwoJa2BhBPEiwA0l0ImIl16EikjwoAsTVQItaslY3473vmIwgAvI6oe0E_oJLyBt4xOf_m6xoC2aUQAvD_BwE&gclsrc=aw.ds .
So from the 1st September I can withdraw?
Technically, yes, but that is if your fund is ready to accept applications!
How can I make a withdrawal from my vested pot. (to withdraw all the monies) while I'm still working for the same company?
That will not be possible. You will have to be unemployed to access the vested pot.
@YvonneFreely so if apply to next company, am I going to withdraw from my vested pot that existed prior to 1 Sep?
Yes, only when you are unemployed before you start with the next company, and if you have a pension or provident fund not an RA.
Hi Yvonne say for instant I hve R100000 provident fund how much can I withdraw from that amount and r u allowed to withdraw the whole amount or just 10%
Just 10% if your still working, so R10k, but if/when you lose your job you can get the rest of the vested savings.
Thank u so much 🙏
Such a pleasure! All the best 🙌🏾
So how do YOU see that your old provident fund is On RA ? Im lost now ! Like an example me i have only provident fund that they deduct on old rule so my worry is to lose it also while i hear dat it will apply old rule stay on vested pot ! So wat do you mean when you say if your money on vested pot is RA you will not allowed to drow till you rich your retirement, so if i lose my job maybe next year i will raither join gangster 😭 cz my money has been lock even the old money💔
If you resigned you'll get all your money
You will never lose your retirement savings. All your old retirement savings will be placed in the vested pot and will be accessible according to the fund rules.
You can confirm with your fund what type of retirement fund you have but it seems you had a provident fund and not an RA (retirement annuity).
What happens if you don't take the 2 pot system funds
They will stay invested and continue to grow 😊
@Yvonne what happened if you have 35k bcz i really need this money to pay debts
If you are still employed you will get access to only 10% which is R3.5k in your savings pot. I propose you find a side hustle that could help you increase your income to pay of the debts.
I want to know whats happening to the rest of my old savings,like pension and provident fund if only take 10 percent of it,whats happening to the 90percent of it coz now after the 31st we will be talking about new contribution to the new 2pots,whats happening to my old funds
Thanks for your question! The old funds will be kept in a 3rd pot called the vested pot and will grow over time as the underlying investments grow.
Good Evening everyone
Kindly I would like to know if, I hbae R70000, I will get R30000 and annually is R88560 it means my tax bracket is 18%, so it will be R30000 × 18%=5400 , then R30000-5400=24600 that I will receive in my bank account and the other R40 000 will remain inside vested account?
Then, for my future contributions from my employer, I will be contributed to the two puts system?
Hi 👋🏾 No, if you have R70k you will get R7k before tax (likely 18%) and fees. The R63k remains in your vested pot.
That’s correct, 33% to your savings pot and 67% to your retirement pot.
Hi sesterr what happens if you are under a contract that expires after few years from now and you contribute to pansion fund?what happens if i dont renew??
Hi! As long as you are contributing towards retirement this reform affects you, and after your contract ends and you are unemployed you can still access your savings pot once per tax year and your vested pot funds. However, your retirement pot will be locked until you retire.
Thank you 🌹
It’s a pleasure! All the best!