Two-pot retirement system: Over R35-billion paid out
In less than three months of the two-pot retirement system kicking in, already R35-billiob has been withdrawn.
According to the latest report by the South African Revenue Service, R35-billion in claims for the two-pot retirement system have been paid out.
SARS released the updated figures on Tuesday, 19 November.
'As of 18 November 2024, 2,153,942 directive applications were received and a total of 1,914, 306 directives issued with a total gross value of R35 052 572 876.62,' reads a statement on the website.
SARS also announced that:
- 169 509 applications were declined for a myriad of reasons, ranging from systems failures from the fund management entities to wrong identification number, wrong tax number etc.
- 41 523 directives were declined because of insufficient funds, wrong codes etc.
- 28 525 directives were cancelled by taxpayers who changed their minds.
READ: Two-Pot System: How to access invested retirement money from September
The Two-Pot Retirement Fund System kicked in on 1 September.
It allows members contributing towards saving for retirement the option to make one taxable withdrawal per year from the savings pot, provided that the balance has reached a minimum threshold of R2,000.
Prior to the Two-Pot system, one could access his/her retirement savings when changing jobs, or for early retirement.
Last month, the amount that was paid out exceeded R21-billion. Read more about it - SARS: Two-Pot system pay-outs exceed R21-billion.
Financial advisors have warned against people withdrawing money prior to retirement as this will negatively affect their overall retirement amount. READ: LISTEN: South Africans warned 'not to touch' pension funds before retirement
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