Sarah Heuer, Communications Director at inSite Connect

We are all getting the hang of the Two-Pot System – and finding fascinating new enigmas and permutations along the way. By way of introducing the latest pothole – a reminder that the system splits contributions as follows:

What does this mean in practice? Consider the following example. Joe is a young member of his employer’s retirement fund, but he is planning to resign at the end of January. Joe’s retirement savings look like this:

The takeaway is this When a member resigns, they MUST make a decision as to what they are going to do with the money in the various pots. And they CANNOT access the retirement pot, even if it contains nothing more than a solitary cent.

AND THEY NEED TO HAVE THIS EXPLAINED TO THEM IN SIMPLE TERMS.

ENDS