South Africa’s retirement savings crisis has reached a critical point, with more workers unable to preserve their retirement funds, according to the latest 2023 Old Mutual Savings and Investment Monitor Survey. In response to this growing retirement crisis, the government has proposed a retirement reform aptly named Two-Pot.
The new system promises to provide a sustainable and practical means for South Africans to balance managing immediate financial needs and long-term retirement planning. However, its ultimate success will depend on individual discipline and comprehensive financial education.
Set for implementation on March 1 next year, this system, at its core, requires that every pension fund member saves two-thirds of their future contributions
