Page 31 - Intra Muros September Issue 2024

FINANCE

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.
https://worthcorporate.com/ for more info.

The assumption is that only low-income are significant tax and fee implications for
earners will be accessing their Savings every withdrawal. For example, if you’re in
Pot, however, a similar rollout in Australia, the top tax bracket, you’ll be lucky to bank
Brazil and Chile showed 90% of all fund R16,500 after that’s taken into account,’
members used their right of withdrawal. she adds.
Further research conducted by Worth
showed that of the people intending to ‘You are effectively borrowing money from
make a withdrawal in September, 51% your future self when you access your
needed to use that money to repay debt Savings Pot,’ says Pieter Koekemoer of
or loans and 43% want to use it to cover Coronation Fund Managers.
their increasing cost of living.
A calculation by Worth shows that a
This is where employers can make 35-year-old earning R27,000 per month
a deep and lasting impact through who makes a withdrawal now will pocket
financial education. ‘Firstly, there are around R22,000. In retirement, that one
other ways to decrease debt and cover withdrawal would be worth the equivalent
the increasing cost of living expenses of a good second-hand car. Another way of
and we’re experienced at creating this looking at it is that they’d have to work an
financial behavioural change,’ says Parry. additional 23 months or deposit an extra
‘Secondly, no one is getting R30,000 into R166 per month in order to “catch up”
their bank account in September as there those contributions.

How will the Two-Pot System work?

THE OLD POT THE TWO-POT SYSTEM

Also known as the vested pot (from 1 September 2024) RETIREMENT
POT

SAVINGS
POT

2/3

1/3 CONTRIBUTIONS

CONTRIBUTIONS

I can use this if I change employers I can use this every year I can use this on retirement

INTRAMUROS SEPTEMBER 2024 | 29