Two-pot retirement system: Calculate how much you will get out
Estimate how much you will get when you withdraw from your retirement fund after the two-pot retirement system kicked in on September 1.
The two-pot retirement system continues to be a hot topic in South Africa. It kicked in on 1 September.
The new law allows pension fund members to access a portion of their retirement savings once a year.
Financial advisors have warned South Africans from rushing to withdraw from their retirement savings.
READ: LISTEN: South Africans warned 'not to touch' pension funds before retirement
Withdrawing reduces the value of your investment at retirement. The amount you withdraw will also be taxed at your marginal rate.
Calculator
READ: Two-Pot System: How to access invested retirement money from September
The South African Revenue Service (SARS) has released a calculator where pension fund members can see an estimation of how much they can withdraw.
'The calculator will assist pension fund members with an illustrative amount of what they can possibly expect as a payout,' states the SARS website.
The estimated amount depends on members filling in the right information.
'All relevant and accurate information must be provided to get a clear estimate of the payout,' states the SARS website. It also issues a warning: 'Please note that all results displayed are a simulation based on the data that you have supplied and may change when your final tax directive is issued, or your next tax return is submitted. Additional fees may be deducted by your fund administrator'.
Here is the calculator
https://tools.sars.gov.za/sarsonlinequery/savings-pot-calculator
.Image courtesy of iStock/ @years
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