Two-Pot Retirement System
Usage Examples
"Thandi's Nedbank pension got split two ways. Her contributions: R1,000 a month now goes R333 to savings pot, R667 to retirement. When her kid needed medical money, she withdrew R8,000 from savings pot. The R667/month stays locked for retirement."
"Bongani's employer's two-pot system works like this: he puts in R2,000 monthly. R667 goes to his savings pot (accessible once yearly for emergencies). R1,333 goes to retirement pot (locked until 55+). When load shedding hit his electrician business, he withdrew R12,000 from savings pot to buy backup generator."
"Nomsa checked her SARS assessment after a two-pot withdrawal — that R5,000 she pulled from savings pot got taxed as income. So she really got R3,500 after tax. Lesson: withdrawals are easy, but SARS treats them as income and you're reducing retirement savings."