Page 29 - FWG Issue 7 August 2024

Finance
Image by JOBERT DE AQUINO - Pixabay
How will the two-pot system work?
THE OLD POT THE TWO-POT SYSTEM
Also known as the vested pot (from 1 September 2024)
I can use this if I change employers
Fourways Gardens • 27 • August 2024
‘You are effectively borrowing money from
your future self when you access your Savings
Pot,’ says Pieter Koekemoer of Coronation Fund
Managers.
A calculation by Worth shows that a 35-year-
old earning R27,000 per month who makes a
withdrawal now will pocket around R22,000.
In retirement, that one withdrawal would be
worth the equivalent of a good second-hand
car. Another way of looking at it is that they’d
have to work an additional 23 months or deposit
an extra R166 per month in order to “catch up”
those contributions.
MANAGE YOUR MONEY LIKE A PRO
If you’d like to increase your cash flow and
decrease your financial stress Worth offers
online courses through the Discovery Bank
app. It’ll cost you R5 to activate and you get
15,000 Vitality Money points for completing
either Wealthy Me™ or Wealthy Couples™.
Worth also offers a financial wellness
solution for employers that includes
online courses, face-to-face workshops
and online webinars – including one
specifically geared to help employees
navigate their two-pot choices. Visit
https://worthcorporate.com/ for more info.
RETIREMENT
POT
SAVINGS
POT
2/3
1/3 CONTRIBUTIONS
CONTRIBUTIONS
I can use this every year I can use this on retirement