South Africa Archives - Page 7 of 24 - Pension Policy International

19OctOctober 19, 2022

A leisurely retirement is further out of reach for most South Africans

Retirement. What does the word mean to you? For the enviable few who have built up a decent nest egg, retirement represents a life of leisure as compensation for years worked. But that is not the reality for most South Africans. When 10X Investments published its first South African Retirement Reality Report in 2018, it highlighted how poorly prepared working South Africans were for retirement. Subsequent reports, including the latest, released recently, have shown that the outlook is worsening by...

October 19, 2022

NewsPension design, savings, South Africa

17OctOctober 17, 2022

South African savings grew by 15.4% in 2021, report shows

Allianz unveiled the 13th edition of its Global Wealth Report, which puts the asset and debt situation of households in almost 60 countries under the microscope. In retrospect, 2021 might have been the last year of the old “new normal”, with bullish stock markets powered by monetary policy. Households benefitted handsomely: For the third year in a row, global financial assets grew by double-digits in 2021, reaching €233tn (+10.4%). In these last three years, private wealth increased by a staggering €60tn. This...

October 17, 2022

Newssavings, South Africa

09SepSeptember 9, 2022

South Africa. EPPF confirms repayment of R30m in Brian Molefe pension order

Molefe is applying for leave to appeal the high court judgment requiring him to return R10m to the fund, possibly delaying resolution of the matter: Lorato Aphiri – Legal Advisor, Eskom Pension and Provident Fund. FIFI PETERS: Let’s shift on to the latest happenings coming out of the Eskom Pension and Provide Fund. They’ve said that the former Eskom boss, Brian Molefe, is still not paying back the money that is owed to the pension and provident fund. This relates...

September 9, 2022

NewsPension Management, South Africa

22AugAugust 22, 2022

South Africa. One simple decision can cost you 41% of your retirement

On the back of the widely known statistic that over 90% of South Africans are not in a position to retire comfortably, FNB Employee Benefits has also noted a growing trend amongst SME employees not fully understanding or saving enough for retirement. “Although up to 70% of our commercial banking employers currently don’t offer formal benefits to their staff members, the small and medium businesses that do offer these benefits are concerned at the low rate of retirement saving from...

August 22, 2022

News2022, Saving, South Africa, Withdrawals

08AugAugust 8, 2022

South Africa. Proposed new ‘two-pot’ will allow one withdrawal per year from savings

On 31 July, the South African government announced the proposal of a “two-pot” retirement system. The proposed system will allow people to save for non-retirement purposes (e.g. emergencies) via their retirement funds and access one third of their retirement savings when needed. You can withdraw money once a year, as long as there is money in the savings pot. "These amendments aim to encourage members to preserve their retirement savings by making it more flexible to accommodate unforeseen pressures that members face...

August 8, 2022

News2022, Regulation, South Africa, Withdrawals

02AugAugust 2, 2022

South Africa. Two-pot system will not make any pension savings immediately available

A call from National Treasury for public comment on proposed changes to legislation, as part of the overhaul of SA’s retirement savings industry, discloses a very important aspect about accessing your pension fund in that members of pension and retirement funds will not be able to access their existing pension fund money once the new legislation comes into effect next year. In effect, the new ‘two-pot’ system seems to have evolved into a ‘three-pot’ system. The most recent statement from Treasury...

August 2, 2022

News2022, Pension design, South Africa, Withdrawals

01AugAugust 1, 2022

South Africa’s Treasury Drafts Plan to Lift Retirement Savings

South Africa’s National Treasury has published draft reforms aimed at encouraging citizens to have easily accessible savings, while also ringfencing funds meant for retirement. The so-called two-pot system will allow individuals to contribute one-third of savings into an account that can be accessible at any time, while two-thirds must only become available at retirement. Read also South Africa. Two-pot system will not make any pension savings immediately available “The two-pot system option will present a better balance between ensuring preservation of retirement...

August 1, 2022

News2022, savings, South Africa, Withdrawals

06JulJuly 6, 2022

Warning over pension change for South Africa

Retirement funds will have to invest in upskilling trustees to empower them to navigate the complex world of infrastructure investing opened up by the gazetting of the amendments to Regulation 28 of the Pensions Fund Act, says Andrew Davison, chair of the Investments Committee of the Actuarial Society of South Africa (ASSA). The new Regulation 28 investment limits allow retirement funds to invest up to 45% of assets in South African infrastructure projects, effective from the beginning of January 2023. Infrastructure...

July 6, 2022

News2022, Investment, Pension Reform, South Africa

29JunJune 29, 2022

South Africa. Treasury sheds light on retirement reform proposals

At a recent conference, National Treasury’s Acting Director-General expounded on the two-pot retirement system, the governance of umbrella funds and changes to Regulation 28. Ismail Momoniat, Acting Director-General at National Treasury, addressed the Pension Lawyers Association Virtual Conference in May with an update on retirement reform developments. He confirmed that retirement reform is alive and well, although there is still a need to consolidate the various proposals. He focused on five main areas: 1. Two-pot system proposal On the two-pot system proposal, which...

June 29, 2022

News2022, Pension Reform, South Africa

10MayMay 10, 2022

More tax for thousands of retirees in South Africa

Thousands of retirees will find lower-than-expected pensions in their bank accounts at the end of this month owing to higher tax deductions. Thousands more already had this experience at the end of last month. This is as a result of administrators implementing tax directives issued by the South African Revenue Service (SARS) in an attempt to ensure the correct tax is collected upfront from retirees who receive more than one pension or a pension and salary income, said consumer financial...

May 10, 2022

News2022, South Africa, Taxation

October 2022

A leisurely retirement is further out of reach for most South Africans

South African savings grew by 15.4% in 2021, report shows

September 2022

South Africa. EPPF confirms repayment of R30m in Brian Molefe pension order

August 2022

South Africa. One simple decision can cost you 41% of your retirement

South Africa. Proposed new ‘two-pot’ will allow one withdrawal per year from savings

South Africa. Two-pot system will not make any pension savings immediately available

South Africa’s Treasury Drafts Plan to Lift Retirement Savings

July 2022

Warning over pension change for South Africa

June 2022

South Africa. Treasury sheds light on retirement reform proposals

May 2022

More tax for thousands of retirees in South Africa