Summary
The reform will create savings, retirement and vested components. The savings and retirement components are the only ones to receive retirement contributions from the implementation date onwards. The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
The ultimate success of the two-pot system will be determined after it is implemented in September 2024. Once the system goes live, members should be able to access required and authorised funds. However, the system may lead to other problems if members are not fully aware -- or do not have the necessary understanding -- of the impact on tax, pension funds, provident funds etc.
Actions
The FSCA published the requirements for the rule amendments (in February 2024) which needed to be submitted by retirement funds effecting the system in terms of the two bills.
Are there plans?
Following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law, retirement funds must apply for rule amendments with the FSCA and change their systems to implement the system from 1 September.
Is it on the agenda?
The ultimate goal is to assist fund members with additional cash/funds in times of financial challenges. When the system does become available, it could impact retirement planning for members by providing more frequent access to a portion of their investment called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Goals
When effectively implemented, the two-pot retirement system will allow retirement fund members to make withdrawals from their funds while they are still active members.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The reform will create savings, retirement and vested components. The savings and retirement components are the only ones to receive retirement contributions from the implementation date onwards. The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
The ultimate success of the two-pot system will be determined after it is implemented in September 2024. Once the system goes live, members should be able to access required and authorised funds. However, the system may lead to other problems if members are not fully aware -- or do not have the necessary understanding -- of the impact on tax, pension funds, provident funds etc.
Actions
The FSCA published the requirements for the rule amendments (in February 2024) which needed to be submitted by retirement funds effecting the system in terms of the two bills.
Are there plans?
Following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law, retirement funds must apply for rule amendments with the FSCA and change their systems to implement the system from 1 September.
Is it on the agenda?
The ultimate goal is to assist fund members with additional cash/funds in times of financial challenges. When the system does become available, it could impact retirement planning for members by providing more frequent access to a portion of their investment called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Goals
When effectively implemented, the two-pot retirement system will allow retirement fund members to make withdrawals from their funds while they are still active members.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
Effective from 1 September, the reform will create savings, retirement and vested components. The savings and retirement components are now the only ones to receive retirement contributions . The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
The two-pot system is operational and some applicants have already withdrawn funds members . However, the system may lead to other problems if members are not fully aware -- or do not have the necessary understanding -- of the impact on tax, pension funds, provident funds, etc.
Actions
The FSCA published the requirements for the rule amendments (in February 2024) which needed to be submitted by retirement funds effecting the system in terms of the two bills.
Are there plans?
The overall aim is to assist fund members with additional cash/funds in times of financial challenges. The new system could affect retirement planning for members by providing more frequent access to a portion of their investment, called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Is it on the agenda?
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law.
Goals
The two-pot retirement system allows retirement fund members to make withdrawals from their funds while they are still active members. The ultimate goal is to assist fund members with additional cash/funds in times of financial challenges. When the system does become available, it could affect retirement planning for members by providing more frequent access to a portion of their investment called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
Effective from 1 September, the reform will create savings, retirement and vested components. The savings and retirement components are now the only ones to receive retirement contributions . The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
The two-pot system is operational and some applicants have already withdrawn funds members . However, the system may lead to other problems if members are not fully aware -- or do not have the necessary understanding -- of the impact on tax, pension funds, provident funds, etc.
Actions
The FSCA published the requirements for the rule amendments (in February 2024) which needed to be submitted by retirement funds effecting the system in terms of the two bills.
Are there plans?
The overall aim is to assist fund members with additional cash/funds in times of financial challenges. The new system could affect retirement planning for members by providing more frequent access to a portion of their investment, called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Is it on the agenda?
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law.
Goals
The two-pot retirement system allows retirement fund members to make withdrawals from their funds while they are still active members. The ultimate goal is to assist fund members with additional cash/funds in times of financial challenges. When the system does become available, it could affect retirement planning for members by providing more frequent access to a portion of their investment called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
Effective from 1 September, the reform will create savings, retirement and vested components. The savings and retirement components are now the only ones to receive retirement contributions . The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
The two-pot system is operational and some applicants have already withdrawn funds members . However, the system may lead to other problems if members are not fully aware -- or do not have the necessary understanding -- of the impact on tax, pension funds, provident funds, etc.
Actions
The FSCA published the requirements for the rule amendments (in February 2024) which needed to be submitted by retirement funds effecting the system in terms of the two bills.
Are there plans?
The overall aim is to assist fund members with additional cash/funds in times of financial challenges. The new system could affect retirement planning for members by providing more frequent access to a portion of their investment, called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Is it on the agenda?
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law.
Goals
The two-pot retirement system allows retirement fund members to make withdrawals from their funds while they are still active members. The ultimate goal is to assist fund members with additional cash/funds in times of financial challenges. When the system does become available, it could affect retirement planning for members by providing more frequent access to a portion of their investment called the savings pot. However, the primary purpose of the change is to discourage early withdrawals from retirement savings and promote long-term financial security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law. The two-pot system allows retirement fund members to make withdrawals from their funds while they are still active members by providing more frequent access to a portion of their investment, called 'the savings pot'. The challenge, however, is that these withdrawals could affect their retirement planning. The reform divides retirement savings into savings, retirement and vested components. The savings and retirement components are now the only ones to receive retirement contributions. The vested component will house retirement funds accumulated by members before the implementation date.
View DetailsIs it working?
Yes. South Africans had withdrawn R57bn from their savings between September 2024 when the two-pot system went live and June 2025, according to Sars.
Actions
The two-pot system is operational.
Are there plans?
Further reforms (eg, retrenchment withdrawals) are under discussion for a second phase.
Is it on the agenda?
This reform is a core part of National Treasury’s retirement reform agenda.
Goals
The goal of two-pot retirement system is to assist fund members with additional cash/funds in times of financial challenges.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law. The two-pot system allows retirement fund members to make withdrawals from their funds while they are still active members by providing more frequent access to a portion of their investment, called the savings pot' The challenge, however, is that these withdrawals could affect their retirement planning. The reform divides retirement savings into savings, retirement and vested components. The savings and retirement components are now the only ones to receive retirement contributions. The system now sector standard with improved governance​.
View DetailsIs it working?
Yes. South Africans had withdrawn R57bn from their savings between September 2024 when the two-pot system went live and June 2025, according to Sars. This reform has been well absorbed by industry and is having a positive impact on active member support and liquidity, though preservation risks have been flagged for continued monitoring.
Actions
The two-pot system is operational. SARS, FSCA and Treasury are all actively monitoring withdrawals and industry impact; programme data is shared at Cabinet and SARB review cycles.
Are there plans?
Further reforms (eg, retrenchment withdrawals) are under discussion for a second phase. National Treasury and FSCA plan continued system refinement, quarterly reviews of industry and member feedback as well as audits.
Is it on the agenda?
National Treasury and the FSCA designate this reform a recurring agenda deliverable, referenced in administration and parliamentery reports.
Goals
The goal of two-pot retirement system is to assist fund members with additional cash/funds in times of financial challenges. Furthermore, the reform aims to ensure retirement industry sustainability and improve member choice and access.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The two-pot system is operational, having been effected on 1 September 2024 following the signing of the Pension Funds Amendment Bill and the Revenue Laws Amendment Bill into law. The two-pot system allows retirement fund members to make withdrawals from their funds while they are still active members by providing more frequent access to a portion of their investment, called the savings pot.
Deliverables include: (i) full implementation of the two‑pot structure across pension, provident and retirement annuity funds from 1 September 2024; (ii) approval of fund rule amendments and systems changes to create and track savings and retirement pots and to process seed‑capital transfers; (iii) clear tax and administrative rules for once‑per‑tax‑year withdrawals from the savings pot; and (iv) communication, calculators and self‑help tools (SARS, FSCA, funds) to help members understand the impact of withdrawals on retirement outcomes.
Is it working?
Early evidence suggests the reform has successfully created a structured early‑access channel without requiring fund resignation, but high initial withdrawal volumes raise concern that savings pots may be depleted quickly if members treat them as transaction accounts. There are unresolved debates around additional early‑access relaxations for long‑term unemployed individuals, but frequent policy changes could undermine the system’s credibility and the goal of improved preservation.
Actions
Actions already taken: (i) enactment of the Revenue Laws Amendment Act and Pension Funds Amendment Act, effective 1 September 2024; (ii) FSCA approval of rule amendments and publication of the Two‑Pot System June 2024 guidance; (iii) National Treasury publication of updated FAQs (August 2024) explaining the system, seed capital, tax treatment and limits; (iv) SARS launch of a Two‑Pot System portal and calculator and digital services for funds and taxpayers; and (v) funds’ processing of large volumes of initial withdrawals.
Are there plans?
Planned next steps include: (i) monitoring and reviewing initial withdrawal patterns and behavioural responses to the savings pot; (ii) addressing technical issues and anomalies flagged by industry and SARS, potentially via further legislative amendments; (iii) considering adjustments to hardship rules and early‑access parameters in light of macroeconomic conditions and retirement‑adequacy data; and (iv) integrating two‑pot experience into broader social‑security and retirement‑reform discussions, including the proposed mandatory pension system.
Is it on the agenda?
The two‑pot system is a flagship element of retirement reform, featured in Budget Reviews. It is framed as a response to widespread early cash‑outs on job change, which undermined preservation and led to poor retirement outcomes, while acknowledging the need for liquidity during financial distress. Further phases may address outstanding issues, including alignment with broader social‑security reform and treatment of defined‑benefit funds.
Goals
The goal is to implement the two‑pot retirement system to improve preservation of retirement savings while still allowing limited, structured early access to a portion of accumulated funds, thereby balancing short‑term financial relief with long‑term income security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The two-pot retirement system was implemented on 1 September 2024. Under this system, retirement fund contributions are split: one-third goes into a "savings pot" that members can access once per tax year in genuine financial emergencies (subject to tax); and two-thirds go into a "retirement pot" that is preserved until retirement. The system is in its third year of operation. SARS (South African Revenue Service) processes tax directives (formal tax calculations that retirement funds must obtain before releasing savings pot withdrawals) near-instantaneously for compliant fund members. FSCA rule amendments have been approved for all qualifying funds. Tax brackets were adjusted by 3.4% for the 2026/27 tax year. COMPLETE: this reform is in place and the effects are already evident.
View DetailsIs it working?
The two-pot system is performing well and has been well-absorbed by the industry. It has positively addressed the longstanding tension between retirement savings preservation and member financial resilience - allowing access to a portion of savings in genuine hardship without eroding the long-term retirement pot. Withdrawal data in 2026 shows a shift from emergency-driven withdrawals towards more considered use of the savings pot. Preservation risks from over-withdrawal remain a monitored concern for FSCA.
Actions
SARS, FSCA and NT are actively monitoring withdrawal patterns and industry impact. System data are being shared at cabinet and in SARB review cycles. Preservation risks (members over-withdrawing from the savings pot) remain a monitored concern.
Are there plans?
There is continued system refinement and quarterly reviews of industry and member feedback along with audits of fund compliance are planned.
Is it on the agenda?
Yes. NT and FSCA designate this as a recurring agenda deliverable, referenced in annual administration and parliament reports.
Goals
The goal is to implement the two‑pot retirement system to improve preservation of retirement savings while still allowing limited, structured early access to a portion of accumulated funds, thereby balancing short‑term financial relief with long‑term income security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
Summary
The two-pot retirement system was implemented on 1 September 2024. Under this system, retirement fund contributions are split: one-third goes into a "savings pot" that members can access once per tax year in genuine financial emergencies (subject to tax); and two-thirds go into a "retirement pot" that is preserved until retirement. The system is in its third year of operation. SARS (South African Revenue Service) processes tax directives (formal tax calculations that retirement funds must obtain before releasing savings pot withdrawals) near-instantaneously for compliant fund members. FSCA rule amendments have been approved for all qualifying funds. Tax brackets were adjusted by 3.4% for the 2026/27 tax year. COMPLETE: this reform is in place and the effects are already evident.
View DetailsIs it working?
The two-pot system is performing well and has been well-absorbed by the industry. It has positively addressed the longstanding tension between retirement savings preservation and member financial resilience - allowing access to a portion of savings in genuine hardship without eroding the long-term retirement pot. Withdrawal data in 2026 shows a shift from emergency-driven withdrawals towards more considered use of the savings pot. Preservation risks from over-withdrawal remain a monitored concern for FSCA.
Actions
SARS, FSCA and NT are actively monitoring withdrawal patterns and industry impact. System data are being shared at cabinet and in SARB review cycles. Preservation risks (members over-withdrawing from the savings pot) remain a monitored concern.
Are there plans?
There is continued system refinement and quarterly reviews of industry and member feedback along with audits of fund compliance are planned.
Is it on the agenda?
Yes. NT and FSCA designate this as a recurring agenda deliverable, referenced in annual administration and parliament reports.
Goals
The goal is to implement the two‑pot retirement system to improve preservation of retirement savings while still allowing limited, structured early access to a portion of accumulated funds, thereby balancing short‑term financial relief with long‑term income security.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
No data available for the deliverable: Unclaimed assets – existing unclaimed retirement fund benefit provisions
Summary
Existing regulatory provisions requiring retirement funds to identify, report and trace unclaimed benefits are functioning. Pension funds must submit returns and demonstrate they are taking reasonable steps to trace beneficiaries. FSCA reporting shows improving compliance across major funds and a reduced backlog in asset claims processing. The 2026 Budget speech announcement of a central administrator adds future structural depth to this framework - but it is at announcement stage only, with a discussion note not yet released as at May 2026.
View DetailsIs it working?
Existing provisions are functioning and delivering improving outcomes for beneficiaries. The central administrator announcement is a positive additional step, but it remains at announcement stage only. The gap between current provisions and the proposed central administrator is significant - the latter would create a qualitatively better outcome for beneficiaries. Until operational, the sector relies on individual fund compliance, which is improving but not yet consistently high across all funds.
Actions
Pension fund compliance with unclaimed benefit provisions is improving. FSCA reporting shows a reduced backlog in asset claims. The Budget announcement of a central administrator signals intent to go further with a central database and single-point claims process.
Are there plans?
Annual reporting mechanisms, stricter tracing mandates and ongoing regulatory enforcement are planned. The central administrator reform will add infrastructure once the discussion note is released and implementation begins.
Is it on the agenda?
Yes. Cabinet and FSCA prioritise unclaimed benefit compliance in governance cycles, with annual reviews assessing outcomes.
Goals
Improve South Africa's retirement savings industry - increasing member access to savings in genuine emergencies, ensuring unclaimed retirement fund benefits are identified and returned to beneficiaries. This will address long-standing fragmentation and governance weaknesses across the retirement fund sector.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Existing regulatory provisions requiring retirement funds to identify, report and trace unclaimed benefits are functioning. Pension funds must submit returns and demonstrate they are taking reasonable steps to trace beneficiaries. FSCA reporting shows improving compliance across major funds and a reduced backlog in asset claims processing. The 2026 Budget speech announcement of a central administrator adds future structural depth to this framework - but it is at announcement stage only, with a discussion note not yet released as at May 2026.
View DetailsIs it working?
Existing provisions are functioning and delivering improving outcomes for beneficiaries. The central administrator announcement is a positive additional step, but it remains at announcement stage only. The gap between current provisions and the proposed central administrator is significant - the latter would create a qualitatively better outcome for beneficiaries. Until operational, the sector relies on individual fund compliance, which is improving but not yet consistently high across all funds.
Actions
Pension fund compliance with unclaimed benefit provisions is improving. FSCA reporting shows a reduced backlog in asset claims. The Budget announcement of a central administrator signals intent to go further with a central database and single-point claims process.
Are there plans?
Annual reporting mechanisms, stricter tracing mandates and ongoing regulatory enforcement are planned. The central administrator reform will add infrastructure once the discussion note is released and implementation begins.
Is it on the agenda?
Yes. Cabinet and FSCA prioritise unclaimed benefit compliance in governance cycles, with annual reviews assessing outcomes.
Goals
Improve South Africa's retirement savings industry - increasing member access to savings in genuine emergencies, ensuring unclaimed retirement fund benefits are identified and returned to beneficiaries. This will address long-standing fragmentation and governance weaknesses across the retirement fund sector.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)