The two-pot system will bring huge changes to how South African retirement funds operate. the changes also include what happens when one resigns.
The system allows South Africans to access a portion of their retirement funds, while also ensuring long-term financial security.
Professor Elda du Toit, Professor of Financial Management at the University of Pretoria, says although it is called the two-pot system, it is actually a three-pot system.
Three-pot systemShe says the three pots are the vested pot, retirement pot and the savings pot.
Du Toit says you will have an option on what to do with all three pots when you leave your job before retirement.
