Geraldine Fowler, Chairperson of the Institute of Retirement funds Africa
The Institute of Retirement Funds (IRFA) has strongly advocated for the revised two-pot retirement system to be implemented on the 1st of March 2025, urging legislators and regulators to heed the consensus of retirement fund professionals and to acknowledge the complexities involved in successful implementation.
In advocating for the revised implementation date the Institute of Retirement Funds Africa (IRFA), a pivotal organisation representing the local retirement sector, aligns this with its commitment to ensuring a transition that is well-informed, equitable, and free from the risk of unnecessary disappointments for retirement fund members.
In recognising the substantial nature of the changes introduced by the two-pot system and the profound impact these will have on the financial landscape of South Africa’s retirees, and in solidarity with the views presented by the Association for Savings and Investment South Africa (ASISA), IRFA suggests that the previously proposed date of 1 March 2024 is impractical, given the current status of the legislative process and the need for thorough preparation.
The proposed legislation, including crucial amendments to the Pension Funds Act, is still under review. IRFA, along with other industry stakeholders, is awaiting the finalisation of these amendments to ensure that systems, processes, and procedures are robust and fully operational before the policy is enacted.
The extension to March 2025 is seen by the Institute as not only a logical step but a necessary one to ensure the necessary timeframe required for retirement funds to address the complex administrative updates, facilitate comprehensive stakeholder communication, and ultimately ensure that members can access their benefits with clarity and confidence.
IRFA is keenly aware of the urgency with which fund members anticipate the implementation of the two-pot system. THE IRFA fully supports the two-pot system and the organisation shares the community’s sentiment for timely access to retirement savings. However, IRFA firmly believes that a rushed enactment could lead to inconsistent experiences for members across different funds, potentially leading to disparities and unintended detrimental outcomes.
IRFA thus urges all involved parties to consider the significant benefits of a 2025 implementation. This timeline is not only more reasonable but is also essential for the meticulous planning required to support the diverse needs of all stakeholders.
“Through thoughtful planning and steadfast commitment to our members’ well-being, we can ensure that the introduction of the two-pot system will be synonymous with progress and security,” says Geraldine Fowler, Chairperson of IRFA. “We stand with ASISA and other industry leaders in championing a date that underscores our shared values of equity, diligence and member-centric service.”
She concludes “we invite our members and the broader retirement fund community to join us in advocating for this change. Together, we can ensure that the introduction of the two-pot retirement system is a resounding success, bolstering the financial security and stability of retirees across South Africa.”
ENDS
For more information on IRFA’s position and initiatives regarding the two-pot retirement system, please visit our website at www.irfa.co.za or contact us at info@irfa.co.za.
Contact Information:
Institute of Retirement Funds Africa (IRFA)
Website: www.irfa.co.za
Email: wayne@irfa.co.za
Mobile: 083 384 6681
ABOUT THE INSTITUTE OF RETIREMENT FUNDS AFRICA (IRFA):
The Institute of Retirement Funds Africa (IRFA) is a leading organisation dedicated to advancing the interests of the retirement sector in South Africa and across Africa. IRFA serves as a voice for the industry, advocating for beneficial policies, sharing expertise, and promoting sustainable practices in the retirement sector.
