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General
Two-Pot Retirement System
A retirement fund structure introduced in South Africa on 1 September 2024 that splits new contributions into two components: a savings pot (one-third) accessible once per tax year for emergencies, and a retirement pot (two-thirds) preserved until retirement. This gives members limited early access while protecting long-term savings.
Usage Examples
"Under the two-pot system, she withdrew R25,000 from her savings pot to cover unexpected medical costs."
"The retirement pot under the two-pot system cannot be accessed until you reach retirement age."
"Before withdrawing from your savings pot, consider that the amount is taxed as income and reduces your retirement savings."