The Two-Pot System Through a Payroll Lens
The Two-Pot Retirement System is often explained as a retirement reform. In practice, it has become a payroll issue. Payroll administrators are no longer just processing contributions. They are responsible for ensuring that contributions are allocated correctly, that reporting aligns with SARS requirements, and that employees understand the tax consequences of decisions they make outside […]
Long-Term Goals, or Short-Term Gains?
More than a million applications have already been lodged with the South African Revenue Service (SARS) to pull funds out of their savings. Given that this amounts to R21.4 billion, that’s a frightening amount of money for a country that doesn’t have a savings culture. What with more people withdrawing cash under the Two Pot […]
Two retirement pots: Limited access, compulsory preservation
Is the proposed two-pot retirement system ‘stirring the pot’ in the retirement fund industry? The draft tax legislation released by National Treasury on 29 July 2022 contains details of the much anticipated two-pot retirement system. The proposed changes are quite far-reaching—although there will also be criticism that the changes do not go far enough. The […]