The 2 pot system has become extremely confusing for some people so a lengthy discission was had with financial planners and experts from Glacier by Sanlam, moderated by Balin Herman. This is by far the most comprehensive discussion with questions and answers from the public. Is it in fact a 3 system pot and what does it mean?

This video gives a really good explanation of the system, how it works, what you can and cannot do with it and how best to use the options available. They make use of very simple graphic representations of the system including making use of actual Rand values used, making it much easier to understand and visualise.

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This explanation also clearly shows the impact of compound interest on your investments and what difference a relatively small withdrawal will make.

This is a very good video which answers a lot of questions not covered in the sometimes very complicated explanations by the financial services industry.

Some of the questions answered.

• How much will you get out after tax if you make a withdrawal?
• If I want to access the money in my pension fund do I need to resign?
• How much tax will be deducted when I withdraw from my fund?
• Can I withdraw the money from my pension fund to buy a car?
• Can I use the money from my pension fund for a medical emergency?
• Is the government considering making withdrawals from pension funds tax free?
• Is it possible to access more than the R30 000?
• How do you make the withdrawal?
• Is the R500 administration fee applicable?

Who comments on the system on this video

• Blain Herman
• Zwelenzima Vavi – SAFTU
• Zanele Sabela – COSATU
• Khanyi Nzukuma – Sanlam Glacier

Update 4 September 2024:

We have had a large number of enquiries on where to access the forms to withdraw from your pension fund or other retirement products so we reached out to some of the fund administration companies to get an answer.

Here is an example from some of the major administration companies which clearly outline the process involved and how to go about making the application for a withdawal.

Liberty: How to access your funds in the two pot system 

This is a very easy to understand infographic which clearly outlines what needs to be done.

Momentum: Steps to follow to withdraw from your 2 post savings

 Momentum have a whatsapp chat which is extremely efficient. This infographic also clearly explains the process to withdraw.

You would need to check foirst of all that the administration company has implemented the processes necessary to make the withdrawal. If you work for a large company that has an HR department, that would be your potrt of call. if not, check your statement and visit the companies website for more info on the withdrawal process.

In all cases you will need the following.

1. Update or confirm your personal details
2. Request the values available for withdrawal
3. Apply for the savings benefit access
4. Ensure your Tax affairs are in order

This process is not like withdrawing at a bank and may take some time before you receive your money.