Momentum Corporate welcomes the delay of the two-pot retirement system implementation until 2025
2 Nov, 2023

Dumo Mbethe, CEO – Momentum Corporate

 

With less than 6 months to go before the initial proposed date for the two-pot retirement system to go live, and as there is still a lot of work to be done by all stakeholders once the final two-pot legislation is passed, Momentum Corporate welcomes the National Treasury’s proposal to delay the implementation until 2025.

 

The retirement industry is built on trust and when implementing a significant change such as the two-pot retirement system, we acknowledge the need for careful consideration and planning to ensure a smooth transition for all stakeholders.

 

During this extended timeframe, it is our duty to ensure that the two-pot system is seen as a fire extinguisher for emergencies only, and not a windfall to be used frivolously.

 

The two-pot retirement system represents a fundamental shift in how retirement funds are managed, and it is essential that all stakeholders, especially members, are well-informed about the changes and how they may affect their retirement planning. We remain committed to playing an active role in educating our clients and the wider industry during this transitional period to ensure that they have a comprehensive understanding of the new system to ensure the best outcomes for all.

 

Member education will empower individuals to make informed decisions about their retirement savings and investment choices. By providing clear and accessible information, we can help members navigate the complexities of the two-pot retirement system, understand the potential benefits, and make choices that align with their long-term financial goals.

 

Additionally, we believe that this extended period should be used as an opportunity for constructive engagement with all stakeholders, including government bodies like SARS and the FSCA, financial institutions, and industry associations. Collaborative efforts to refine the implementation plan and address potential challenges will be crucial in achieving a seamless transition as well as ensuring that an excellent experience is delivered to members of retirement funds.

 

Momentum Corporate remains dedicated to working closely with regulators, policymakers, and our clients to ensure that the two-pot retirement system is implemented in a manner that best serves the interests of all involved. Through education and collaboration, we aim to make this transition as smooth and beneficial as possible for everyone.

 

ENDS

 

 

Author

@Dumo Mbethe
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