Two-pot retirement system signed into law
President Cyril Ramaphosa has signed the Pension Funds Amendment Bill into law, enabling the implementation of the two-pot retirement system.
The new law, effective from September, splits contributions into savings and retirement components, with withdrawals taxed at marginal rates.
The system will give members who haven't yet retired access to a portion of their retirement funds.
The presidency's spokesperson Vincent Magwenya says the act requires pension funds to amend their rules.
"They're also required to adjust their investment portfolios and prepare administrative systems for pension fund members to apply for access to portions of their funds."
READ: A financial expert explains how the two-pot retirement system works
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