"While a notable 17% of claimants selected 'Other' as their motive for withdrawal, the majority of reasons given here was for home improvements and renovations. This isn't really recommended as a good use of Two-Pot savings because it does not…
According to Actuary and damages expert Gregory Whittaker, cybercriminals frequently target retirees because they are likely to have access to capital through retirement savings, and the increasing complexity of financial products, more retirees…
"The two-pot retirement system presents a significant shift in how South Africans can access their retirement savings. While it offers more flexibility, it's also crucial to guide clients to understand the risks and nuances of this new system…
"Up until retirement, about 87% of members rely on trustees to select an investment portfolio for their savings. Three-quarters of funds also have a target income in retirement they work towards, with 60% aligning their default investment option…
A key question when divorcing is the division of retirement benefits between spouses and navigating this aspect of your divorce can be complex. Salome Young, Senior Legal Counsel at Ninety One, shares her insights.
"Seed funding (10% of vested component to a maximum of R30 000) will be accessible from 1 September. Members should be aware of tax implications, including potential changes to marginal tax rates, and the impact on future compound interest and…
With the new two-pot retirement system taking effect in six weeks, members of retirement funds should ensure that they understand the implications of the system, according to Adri Messerschmidt, senior policy advisor at the Association for Savings…
"This year's study validates the ongoing financial and knowledge barriers that South Africans face, which impede effective retirement planning. However, the responses also show a greater awareness of the importance of education in overcoming…
“Preparing and planning for retirement can significantly ease one's later years and prevent loved ones from being financially burdened. By saving more than what might seem necessary now, individuals can create a financial cushion that ensures…
“Any amount withdrawn annually is added to taxable income for that respective tax year, potentially increasing tax liability significantly, especially if they are in a high-income bracket. If you contribute to a retirement annuity to benefit…
"The campaign also aims to demystify the two-pot system, an important retirement reform aimed at addressing essentially two challenges: the lack of preservation and the lack of access to retirement fund savings in cases of emergencies by members…
"Rather than wait for 1 September 2024 and then suffer the disappointment of not having the minimum withdrawal amount of R2 000 in your savings pot, check your retirement benefit statement sooner rather than later," says Natasha Huggett-Henchie,…
"A 2022 survey by the National Treasury revealed that only 6% of South Africans are financially equipped to retire comfortably. This alarming statistic demonstrates the urgent need for effective financial strategies, particularly with the emergence…
“We fully support the new system which seeks to balance immediate financial struggles with long-term security. It is important to encourage people to learn about the Two-pot system, understand the consequences of making an early withdrawal and…
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