Two-pot retirement system in SA compared to other countries

Oct. 5, 2024 - The Citizen

Two-pot retirement system in SA compared to other countriesSouth Africa seems to be taking a measured approach, aligned with some of the best-run countries. South Africa’s two-pot retirement system was not the first in the world as the innovative system was implemented after considering global best practices in Chile, Singapore and Malaysia, as well as the US, UK and New Zealand.

ALSO READ: Two-pot retirement system: more questions answeredEarly access to retirement savings in ChileChile introduced multiple one-off withdrawal windows in response to the pandemic, allowing individuals to access up to 10% of their retirement savings in each window. ALSO READ: Two-pot retirement system: before you withdraw, ask yourselfOther key learningsPillay says other key learnings include that the first year of implementing a two-pot retirement system might be challenging, but it is expected to yield long-term benefits by encouraging more people to opt into and remain in the retirement system and increasing overall assets in the industry.

No one knows for sure how the two-pot retirement system will play out, but the structured system in place should go some way to mitigating against major market risks.”..