The two-pot system and your Metropolitan retirement savings
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The two-pot retirement system is a system that will cover retirement funds, including retirement annuity and Preservation Fund plans, with certain exceptions. The previous implementation date of 1 March 2024 has been postponed to 1 September 2024 by Parliament's Standing Committee on Public Finance.
The two-pot system will have rules according to which an initial withdrawal as well as a yearly withdrawal, once a tax year (1 March to 28 February), may be permitted provided that certain requirements are met. Not all members may be eligible for such withdrawals. No money will be accessible to any member, under this new system, prior to the implementation date of 1 September 2024 and currently, we are unable to provide members with possible withdrawal amounts.
It is important to note that it is not obligatory for a member to take the allowed yearly withdrawal. This should only be done for emergencies to preserve the funds available to members at retirement. It is important that members understand the implications of any withdrawals including that they will be taxed at their marginal tax rate. I.e. if you are currently taxed at 18%, your withdrawal will be taxed at the same rate.
More information will be shared with all members in the months preceding the 1 September 2024 implementation date.
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