Even on the current system it will be taxed. What most people don't know is that thes a tax benefit on monthly payments to Retirement funds so you are currently paying less tax than what you should be potentially paying. I don't disagree entirely, it definitely feels like a "scam" but it's less than what it looks like
Never ever withdraw money from your retirement fund no matter how desperate you are, let's rather learn to save for emergencies. Only 6% retire comfortably in SA and with this system i forsee this number going even lower😢
A strategy to get more tax from the already highly taxed South Africans. And they know that normal people are struggling and will opt to withdraw. Already people can’t afford retirement. Should be a last last resort
@@nomvanoduma9221 Consider the tax implications carefully. I understood from another video that the tax at a nominal rate means that your yearly tax could increase as the withdrawal could push you into a higher tax bracket when added to your annual salary. It's worth investigating. This is govt's strategy to tax the up to R550 000 that would have been your tax free entitlement upon retirement! People are not going to be left with that much cash out on retirement at all if they withdraw so they would have forfeited on getting R550 000 tax free. Smart govt, woe is us!
'Every withdrawal you make from your savings component is added to your taxable income and will be taxed at a fixed marginal tax rate at the time of withdrawal', this is the elephant in the room. The government wants to make money more because they know people will be withdrawing from their savings.
The most simplest explanation ever 👏👏 on the short term it can help with these increasingly tough economic siturations but on the long term misuse of this could lead to working up until 75+ because we wont "afford" to retire 🤔
True let people save money Money doesn't save itself. Every money that you get save at least 50% of that money If you are 5years to your retirement never use your bonus anymore Save it all you won't regret it They say money has one promise if you save me 2day I will save you 2morrow M
i foresee a lot of people resigning before September, imagine being told you cannot access your money and you can only do so when you reach retirement age😅😅😅, i'm sorry but i for one cannot leave that up to the government(Steinof shandis). thank you for the video.
I'm still asking myself what will happen if i resign and stop working at 40 years, which is not retirement age... will government wait until I'm 55to give me my money
Thank you for the clarity Sis Nicolette. I was wondering about the tax side of things. I now know to leave that money as is,and never withdraw anything it's not really worth it 😅
But guys I'm also in the financial sector, but it still doesn't make sense that the amount was taxed prior being saved. Why is the government taxing it again
I’m with the employer and the amount that is saved in my pension is not taxed. My salary is only taxed after the deductions of my pension contributions hence the government taxes when we withdraw money from our pension funds. It might be different with you though.
This tax thing hurts my little heart because the money saved towards retirement is the money already taxed from your monthly salary over the years, I am not sure why it is being taxed as a lump-sum again when you withdraw. Our government is really milking us.
@@FinancialBunny That's not entirely true. Money contributed to an RA uses post tax amounts and you only get a refund when you do your taxes once a year.
Hi Mcoco thank you very much for the valuable information but can I be nosy and ask you to show us the books in your shelf behind you there. It creates curiosity. I tried not to ask about it but hey, I just couldn’t keep it in anymore. I also wish I could one day be able to present myself to confidently. I first met you in 2017 or 18 and my life changed a lot. I also read “What’s your move” cover to cover. You are jewel sis. 🙏🌹
Great idea for those of us with a 'do or die' attitude. We may as well enjoy the already plundered remains of the fruits of our labours while the body is able!
This system is just a scam, basically it's more money for the tax man than me as an individual. They could have just went to the credit union and list all your credits one has and use that money to pay off some of the credit's that are pulling you down financially so that one can be In a stable like financial position.
I've studied this system very closely & firstly there is 3 Pots ( Vested Pot ) not just 2 .People ...I'm speaking to the hard working , honest tax paying citizens that have actually contributed to the economy of this country irrespective of the financial crisis this country is in right now .People don't withdraw any money from your savings don't be tempted .Just leave it for now .Reason being is this whole two Pot system is not actually to benefit you .The masterminds let alone the people that run this country are milleniums away from constructing smart systems to bebefit you let alone this country .Invest your money offshore/property/gold if you can from now & be very wise about your savings .Do not touch your retirement funds .Give it one to two years to confirm what I'm saying .No more than that .
Why did they introduce this ridiculousness in the first place? They should have let us drown in debt. We were fine. This brought so much excitement and confusion in the beginning.
And with this corrupt government, who steal money every day, they can end up saying no money for pensioners, so I am going to bubuhla my money, come September 😂😂😂
So its a mechanism for releasing more money into the fiscus to be taxed so govt can pay the grants and pay their shortfall. There is no.proper vision forward.
absolutely bro,im very worried about this system,i wish it could fail so our money stand there till we retire,this is clear robbery,imagine the tax man,and a lot of instructions over there,people need money now,that's why robbery is escalating
Employees need to understand the capped amount and the tax implications. For me it is really not necessary to take the R30k now unless you have an emergency and don't have an alternative.
@@mokolaericaphamuli355 you can only contribute to the savings pot via a retirement fund and only 1/3 of it goes into the savings pot and the 2/3 into the retirement pot
So what happens to your vested pot from next financial year .you will have access to saving pot.will you have access to your vested pot?or only a 3rd of it.
Very dangerous DEBT TRAP - In future pensioner s will be poorer - This is no different than - ISIDUDLA - Name given to teacher who take early pension - blow the money and come back for re-employment.
Hi Nicolette. My question is how will the interests be calculated between the two pots, will they be calculated separately or it will be a summed. And will it impact the compounding which would have been accumulated if savings remained in 1 pot?
I wonder which debts burden can be erased by 21k after tax ...since they say its gona be a relief to SA workers ..mxm...they had to squeeze the economy through stealing to be in such shambles...they knw well pp will be desparate ...disgusting nje.
If you resign you will get your money nothing has changed in that aspect. The only change is that you have a Savings pot that you can withdraw from. Please
Don't even bother to withdraw your funds, this is a poverty drive rather save that money for the future, imagine R30, 000 and tax youll end up with R25, 200 that money will be finished before you step out of your yard be careful Mzansi.
What then happens to the third pot ( the vested pot) after they have seeded the savings pot with 10% Will I have access to my vested pot upon resignation after September 2024? Is it also only available on retirement? How about upon retrenchment or dismissal? Or at the end of a fixed term contract? It would make sense to only lock the pot made up of the 2/3 contributions but not the vested pot. There’s really no benefit to this for the consumer. The government will be the biggest winner. They have finally found a creative way to dip their corrupt hands into our savings
@FinancialBunny So should one resign before 1 September you can withdraw all your pension contributions? After 1 September you can’t access your pension until retirement age? Kindly please clarify. Please and thank you ❤
Can you leverage a loan against your RA for a loan for an income bearing project like buying lanf and building a residence for rental. Its seems unfair that a finance corporation can use our funds to buy property but as an individual you cant and be taxed again if you withdraw full amount
Yes you can get a loan or surety for a loan if you use the funds to buy, build or renovate your home. This is heavily regulated by your fund's rules and the board of trustees have to decide if they will allow you to do so. There might also be tax implications. Many funds do not allow this.
So the funds that are sitting in the saving component, does it accumulate interest? Or its just removed from your total contribution and it's just sitting there? 😞 Is the two pot automatic or you have to opt for it?
No it’s still part of your retirement fund. It’s just accessible once a year when you need cash. Please ask your fund administrator about opting in. Remember it will be the new law from 1 September for retirement funds so there isn’t opting in
I am entangled in a situation, in summary; i left my job in 2021 took all my pension money deposited into my RA. Now, still unemployed i cant contribute towards my RA. Will this affect me when i want to withdraw?
From a layman's perspective I wouldn't think you will be affected in anyway. Remember the RA money is still your money which suppose to grow in interest whether you are contributing more to it or not. The change that the current pension law amendments seek to do is to enable you to withdraw some of your saved money, which you could not ordinarily do before. I hope that I am right.
Honestly, not all of us will reach retirement. Second is only a potion. Retirement companies or retirement holding companies invested this money. Now, they have to recall their investment positions so that they can pay members. So these companies don't want to do it because there is a lot of admin n cost involved on their side. Hence, they are scaring us not to withdraw.
Hi Nicolette,my question is not related to this topic but need your advise if I have a fixed deposit of about 3 years it is almost a year old and I feel over indebted can't I borrow from my invest and return the money borrowed before maturity or rather cancel the fixed deposit ?
Not Nicollette but speak to your financial adviser or the institution where you have a fixed deposit. On most fixed deposits there are penalties if you withdraw earlier. They normally will not allow you to borrow an amount from the deposit. And in most cases even if they do it might be more than the penalty.
I’m not sure if I understood, what happens if you don’t withdraw from savings pot in a year since you’re allowed to withdraw once a year or you don’t withdraw until the retirement ?
you are allowed to withdraw from savings only once a year. if you don't withdraw you will take that money into retirement. There is no force to withdraw
@frederickhefer3442 for this financial year.they didn't say anything about maximum limits further ,so maybe if your contribute alot your will be able to take out more if needed.
I thought this system will not be in effect from 1st September … I heard on the news that they may push the date as they will not be ready by 1st September . Anyway I will definitely make a withdrawal of Atleast 10 000 just to settles my debts .
You will get one third and the other 2 thirds only on retirement. I stand under correction but if the amount is under R250k you will be able to withdraw it all.
The reform takes place 1st September 2024. If you are no longer contributing to a fund then it won’t apply to you. But essentially if you wanted to withdraw then monies from your existing RA can be used to seed the savings component. Only 10% or up to R30K
@@FinancialBunnyDoes the extension to 1 September mean that anyone retiring before then will still fall under the old rules? Ie. They can get all their money subject to tax? How about GEPF? Please talk about this as this is most on people's minds.
Please explain further. My understanding is that 10% and up to R30K of your existing funds will be seeded into your savings component and that’s what you can withdraw
@@penuellmatlala321 I don’t think that is accurate. If your current fund has R300K, only 10% or up to R30K of it will be used to fund the savings component. That’s the amount you can withdraw and you must have a min of R2000. That’s my understanding
@@FinancialBunny Hi , I think the 'Vested ' portion needs more exploration here. Is it correct to say that the vested pot, is the ENTIRE funds existing on September 01, which then 'seeds' the Savings pot ? Hence , 10% up to a max of R30 000 of the 'vested' pot goes into savings. My understanding is that apart from this, nothing in the vested pot is subject to one thirds. Please explain what happens to the vested pot on resignation? Is it fully accessible subject to tax? What happens upon retirement? The same?
Taxation is there to provide money for grants/dole for those who didnt or who cant provide for pension funds .Dammed if you do ,dammed if dont? Wish i invested my money where i get income from. Will still be paying tax anyway There is no win for people who plan financially for the future. No govt dangles a big enough carrot
I see no benefit in exploring this. It seems i might just be worse off than when I started, let me continue graveling on this, i have a son to think about, i cannot afford to make decisions that might create a challenge for him going into the future, i cannot afford to be a liability to him.
You know whr the danger is?😅 This is veeery tricky 😢 yoh more financial or debt traps. 30k nowadays is like 20cent so NOPE! unless u really have emergency.
The government is the main beneficiary of our pensions. 45% tax on lump sums plus 15 percent vat when you start using that money means that 60% of all that money will go to tax. You will only use 40% of all your lump sum wham you resign or retire.
They certainly want to make up for the serviced debt since it's through the roof Ramophosa and his fincial team is not make sure this is a clear theft of funds.
No, RA only allows you to withdraw at your retirement age of which is 55yrs, but Pension fund will allow you to do those withdrawal's for two pot system, consider the tax as this lady says.
There isn’t much benefit to this. Imagine you have to be taxed, whereas we already get taxed in our salaries. This is a rip off
But you also don’t have to withdraw
Sad, cause we need it.
@@FinancialBunnyTimes are tough, so 70% of people are going to withdraw
@@phumimabanga962I am definitely withdrawing
Even on the current system it will be taxed. What most people don't know is that thes a tax benefit on monthly payments to Retirement funds so you are currently paying less tax than what you should be potentially paying. I don't disagree entirely, it definitely feels like a "scam" but it's less than what it looks like
I'm resigning. Changing jobs won't give me a cashout I'm resigning.
Never ever withdraw money from your retirement fund no matter how desperate you are, let's rather learn to save for emergencies. Only 6% retire comfortably in SA and with this system i forsee this number going even lower😢
Exactly, more problems are coming. Money will run out before a person dies 🤞🏾
A lot of people, especially government employees, die before they "enjoy" their retirement funds. It's a tricky one.
@@nkosinathindala4745 it's not deep bro, don't over analyze it.
I resigned and withdrew the entire thing and went back to school. This “never ever withdraw money” you are saying really doesn’t cut it unfortunately!
Life is not a fits one fits all glove.
I wish the new government that will be in power from 30 may 2024 consider this new thing that has been imposed to us .
A strategy to get more tax from the already highly taxed South Africans. And they know that normal people are struggling and will opt to withdraw. Already people can’t afford retirement. Should be a last last resort
Also, it helps to have another retirement plan. I'm definitely withdrawing mine because why should I suffer now when tomorrow is not promised.
@@nomvanoduma9221 Consider the tax implications carefully. I understood from another video that the tax at a nominal rate means that your yearly tax could increase as the withdrawal could push you into a higher tax bracket when added to your annual salary. It's worth investigating. This is govt's strategy to tax the up to R550 000 that would have been your tax free entitlement upon retirement! People are not going to be left with that much cash out on retirement at all if they withdraw so they would have forfeited on getting R550 000 tax free. Smart govt, woe is us!
'Every withdrawal you make from your savings component is added to your taxable income and will be taxed at a fixed marginal tax rate at the time of withdrawal', this is the elephant in the room.
The government wants to make money more because they know people will be withdrawing from their savings.
This is exactly what I thought.
I suspect the 15 billion they are trying to raise
I read that R27500 is tax free. I don't have a lot of information on it though
Very true man
@@sasashongwe They said most ppl will pay about 9k in tax on the amount of 30k
Mina I need my money. Life after pension not guaranteed
You can't receive your retirement money while you are still working. You only receive your retirement money when rich the required age
@@diphalepashe5361 I mean that small portion.
What if you live? What are you going to live off?
@@bgonya06 I will cross the bridge when I reach there. But this 30K portion. I will take it all
Yes 😂😂😂
The most simplest explanation ever 👏👏 on the short term it can help with these increasingly tough economic siturations but on the long term misuse of this could lead to working up until 75+ because we wont "afford" to retire 🤔
Absolutely and hence why we shouldn't withdraw just because we can please
Thanks Nicolette ❤
Thanks a lot. Very educative and enlightening. Keep up the good work!
Really needed this video cause wow 😅thank you! 🙌🏽
Thanks a million times for the clarity and the caution you gave on tax 🙏
Thank you ever so kindly!
Thank you Coco. Very clear 🙏😉
Thank you for the video, I have learned and appreciate that I know what next step to take
Thank you so much for this explanation
Thank you so much for the information.
Valuable information. Thank you for sharing
True let people save money
Money doesn't save itself.
Every money that you get save at least 50% of that money
If you are 5years to your retirement never use your bonus anymore
Save it all you won't regret it
They say money has one promise if you save me 2day I will save you 2morrow
M
Thanks Nico
this was clear, well explained, for us people who just joined the finance industry
i foresee a lot of people resigning before September, imagine being told you cannot access your money and you can only do so when you reach retirement age😅😅😅, i'm sorry but i for one cannot leave that up to the government(Steinof shandis). thank you for the video.
True, the government is bad at investments, their borrowing habits are also questionable, yet they see it fit to parent us on our finances
I'm still asking myself what will happen if i resign and stop working at 40 years, which is not retirement age... will government wait until I'm 55to give me my money
And you ask yourself, are the funds even there to begin with yhooo ai no.
Not only constructive financial advise but you're beautiful too. Thank you lady. Your counsel have been invaluable🙏🙏🙏
Thanks for the video. I am glad there’s a limitation on the amount that can be withdrawn.
Thank ngwanesho for simplifying this for us, so eloquently
Thank you brother
Thank you so much ❤
Thank you for the clarity Sis Nicolette. I was wondering about the tax side of things. I now know to leave that money as is,and never withdraw anything it's not really worth it 😅
Remember you use tax free funds to contribute to a retirement fund unless it’s an RA.
But guys I'm also in the financial sector, but it still doesn't make sense that the amount was taxed prior being saved. Why is the government taxing it again
Very good question, wonder if it was ever raised in the decision making process and answered truthfully 🤔
My question exactly!!!
I’m with the employer and the amount that is saved in my pension is not taxed. My salary is only taxed after the deductions of my pension contributions hence the government taxes when we withdraw money from our pension funds. It might be different with you though.
RA and Pension funds are not taxed, instead, you get a tax refund when you file your taxes
We are being robbed
This tax thing hurts my little heart because the money saved towards retirement is the money already taxed from your monthly salary over the years, I am not sure why it is being taxed as a lump-sum again when you withdraw.
Our government is really milking us.
Money contributed to retirement fund is before tax.
Yeah retirement money only gets taxed when you excess it.
@@FinancialBunny
That's not entirely true. Money contributed to an RA uses post tax amounts and you only get a refund when you do your taxes once a year.
You made this very clear. I didnt understand it before but now i do
I am glad I could help
Very insightful
I have a problem with being taxed twice, our salaries and pension
Very educational
Hi Mcoco thank you very much for the valuable information but can I be nosy and ask you to show us the books in your shelf behind you there. It creates curiosity. I tried not to ask about it but hey, I just couldn’t keep it in anymore. I also wish I could one day be able to present myself to confidently. I first met you in 2017 or 18 and my life changed a lot. I also read “What’s your move” cover to cover. You are jewel sis. 🙏🌹
Thank you so much, the video is informative.
Yoh id honestly withdraw for travel nothing else. Cause my youth years wont come back in retirement 😂
Great idea for those of us with a 'do or die' attitude. We may as well enjoy the already plundered remains of the fruits of our labours while the body is able!
100% the plan
This system is just a scam, basically it's more money for the tax man than me as an individual. They could have just went to the credit union and list all your credits one has and use that money to pay off some of the credit's that are pulling you down financially so that one can be In a stable like financial position.
This was insightful. Thank you for the video.
This is not going to benefit us as workers, but financial institutions,which are still a threat to the life of the poor especially the black
Thank you for clarifying sisi, however I will be withdrawing come rain or shine. Times are tough and I doubt I will reach retirement age anyway
What makes you say that
@@krazzyvibestv8657 I have a chronic illness
Yoh Phumi😢
Haibo,I rebuke your own words,you will see retirement years and flourish and enjoy it...please watch your words over your own life,you work too hard.😅
I've studied this system very closely & firstly there is 3 Pots ( Vested Pot ) not just 2 .People ...I'm speaking to the hard working , honest tax paying citizens that have actually contributed to the economy of this country irrespective of the financial crisis this country is in right now .People don't withdraw any money from your savings don't be tempted .Just leave it for now .Reason being is this whole two Pot system is not actually to benefit you .The masterminds let alone the people that run this country are milleniums away from constructing smart systems to bebefit you let alone this country .Invest your money offshore/property/gold if you can from now & be very wise about your savings .Do not touch your retirement funds .Give it one to two years to confirm what I'm saying .No more than that .
Nico, you are beautiful xem❤
😂😂😂hebanna!! FOCUS ! young king!
Why did they introduce this ridiculousness in the first place? They should have let us drown in debt. We were fine. This brought so much excitement and confusion in the beginning.
What happens when one is retrenched? Do they still hold your pension till your retirement age? This would be disastrous for a lot of people
And with this corrupt government, who steal money every day, they can end up saying no money for pensioners, so I am going to bubuhla my money, come September 😂😂😂
Me and you same WhatsApp group 🤣🤣
Exactly I agree. Let's enjoy our share while we are still alive. PPL didn't get a chance died b4 retirement
Add to the pls 😂😂😂the money can just dissappear and then what....
So its a mechanism for releasing more money into the fiscus to be taxed so govt can pay the grants and pay their shortfall. There is no.proper vision forward.
absolutely bro,im very worried about this system,i wish it could fail so our money stand there till we retire,this is clear robbery,imagine the tax man,and a lot of instructions over there,people need money now,that's why robbery is escalating
Employees need to understand the capped amount and the tax implications. For me it is really not necessary to take the R30k now unless you have an emergency and don't have an alternative.
Totally agree if there is no reason to take the money don’t do it
Seeing that there is a savings pot instead of requesting money can I add something like R500 to that pot.
@@mokolaericaphamuli355 you can only contribute to the savings pot via a retirement fund and only 1/3 of it goes into the savings pot and the 2/3 into the retirement pot
@@mokolaericaphamuli355why would you willingly give government your money
So what happens to your vested pot from next financial year .you will have access to saving pot.will you have access to your vested pot?or only a 3rd of it.
Very dangerous DEBT TRAP - In future pensioner s will be poorer - This is no different than - ISIDUDLA - Name given to teacher who take early pension - blow the money and come back for re-employment.
Hi Nicolette. My question is how will the interests be calculated between the two pots, will they be calculated separately or it will be a summed. And will it impact the compounding which would have been accumulated if savings remained in 1 pot?
Important question and nobody I have watched is answering these types of questions that most of us have.
Im also bhubhuhlaring my own ❤
For thise with both Pension and RA. Can one withdraw the 10% from both or are we limited to just withdrawal from one vehicle?
I wonder which debts burden can be erased by 21k after tax ...since they say its gona be a relief to SA workers ..mxm...they had to squeeze the economy through stealing to be in such shambles...they knw well pp will be desparate ...disgusting nje.
What if i resign and cash out before September 2024, can i get my entire lump sum? Tax will be steep however i really don't trust this government
So what will happen t my retirement funds ,when I get fired or get retrenched .
How much is the admin cost and how much % tax they will deduct?
Aih I'd rather stay away from my retirement fund yoh.
Thanks for the info.
If you resign you will get your money nothing has changed in that aspect. The only change is that you have a Savings pot that you can withdraw from. Please
Don't even bother to withdraw your funds, this is a poverty drive rather save that money for the future, imagine R30, 000 and tax youll end up with R25, 200 that money will be finished before you step out of your yard be careful Mzansi.
Can't I withdraw all of it? 😢
What happens to my provident fund that existed before 01 September....can I cash it all out if I resign after Sept 1?
What then happens to the third pot ( the vested pot) after they have seeded the savings pot with 10%
Will I have access to my vested pot upon resignation after September 2024? Is it also only available on retirement? How about upon retrenchment or dismissal? Or at the end of a fixed term contract? It would make sense to only lock the pot made up of the 2/3 contributions but not the vested pot.
There’s really no benefit to this for the consumer. The government will be the biggest winner. They have finally found a creative way to dip their corrupt hands into our savings
does this withdrawal system apply on provident fund?
Iyohh R30k cap though😂😂😂they not serious, they should just say that 10% without the cap coz now it’s not worth it
Who's the lady on video and what company does she represent? Same topic was on air on SAFM with Brian Harsh.
Very informative.it is not wise to withdraw.
I'll take it because this the only chance to taste it ,as little as it may because my line of duty doesn't guarantee me a chance of retirement 🤞
What do you do for work?
@FinancialBunny So should one resign before 1 September you can withdraw all your pension contributions? After 1 September you can’t access your pension until retirement age? Kindly please clarify. Please and thank you ❤
Imagine..this is soo wrong
So there is no need for RA then i cannot double save for the uncertain future, nowaday you can never be sure of what the future hold.
How much do they taxe the amount and starting from 1st for September if you resign you are not getting funds?
About 9k for most ppl if you take 30k
Blow by blow.
Can you leverage a loan against your RA for a loan for an income bearing project like buying lanf and building a residence for rental. Its seems unfair that a finance corporation can use our funds to buy property but as an individual you cant and be taxed again if you withdraw full amount
Yes you can get a loan or surety for a loan if you use the funds to buy, build or renovate your home. This is heavily regulated by your fund's rules and the board of trustees have to decide if they will allow you to do so. There might also be tax implications.
Many funds do not allow this.
Regret not withdrawing my money when i was changing jobs and am gonna do all I can to withdrawal all before 1st September
So the funds that are sitting in the saving component, does it accumulate interest? Or its just removed from your total contribution and it's just sitting there? 😞 Is the two pot automatic or you have to opt for it?
No it’s still part of your retirement fund. It’s just accessible once a year when you need cash. Please ask your fund administrator about opting in. Remember it will be the new law from 1 September for retirement funds so there isn’t opting in
Yes the money does accumulate interest also on the savings pot.. 🙏🏿
Yeah the future is not promising. I better use what is given before vanishing😂😅
You are beautiful 😊
I am entangled in a situation, in summary; i left my job in 2021 took all my pension money deposited into my RA. Now, still unemployed i cant contribute towards my RA. Will this affect me when i want to withdraw?
From a layman's perspective I wouldn't think you will be affected in anyway. Remember the RA money is still your money which suppose to grow in interest whether you are contributing more to it or not. The change that the current pension law amendments seek to do is to enable you to withdraw some of your saved money, which you could not ordinarily do before. I hope that I am right.
@financialbunny, If I have already withdrawn 25K 16yrs ago tax free, will I be taxed again if i decide to withdraw again with this new change?
Yes, anything you withdraw is taxable income. Remember you contribute to retirement funds before tax
What I wonder with regards to the retirement portion is, in a divorce, will they no longer give the former partner part of your 2/3s?
This question is important
Honestly, not all of us will reach retirement. Second is only a potion. Retirement companies or retirement holding companies invested this money. Now, they have to recall their investment positions so that they can pay members. So these companies don't want to do it because there is a lot of admin n cost involved on their side. Hence, they are scaring us not to withdraw.
Hi Nicolette,my question is not related to this topic but need your advise if I have a fixed deposit of about 3 years it is almost a year old and I feel over indebted can't I borrow from my invest and return the money borrowed before maturity or rather cancel the fixed deposit ?
Not Nicollette but speak to your financial adviser or the institution where you have a fixed deposit. On most fixed deposits there are penalties if you withdraw earlier. They normally will not allow you to borrow an amount from the deposit. And in most cases even if they do it might be more than the penalty.
@@frederickhefer3442 thank you,much appreciated
I’m not sure if I understood, what happens if you don’t withdraw from savings pot in a year since you’re allowed to withdraw once a year or you don’t withdraw until the retirement ?
you are allowed to withdraw from savings only once a year. if you don't withdraw you will take that money into retirement. There is no force to withdraw
@@FinancialBunny thank you. I now understand
Oh wow, I didn’t think RA will also be in the mix for such, I wonder if one has both, will one be able to withdraw on both in a single FY!?
You will be able to withdraw from each fund you have
@@HartleyCooking But only allowed up to the minimum per year so you may not be allowed to receive 30k from one and 30k form another.
@frederickhefer3442 for this financial year.they didn't say anything about maximum limits further ,so maybe if your contribute alot your will be able to take out more if needed.
@@frederickhefer3442 30k per fund as I heard it.
I thought this system will not be in effect from 1st September … I heard on the news that they may push the date as they will not be ready by 1st September .
Anyway I will definitely make a withdrawal of Atleast 10 000 just to settles my debts .
Hheyi asinendaba weSisi,Thina sifuna imali... okunye after
30 thousand doesn't even enough to pay school fees, this people are playing cost of living is too high
And after tax..maybe around 22k..who is gaining here?. ..😅..
The worst is...they'll be taxing u according to your own salary tax bracket
Would you kindly make a video about opening a family bank
A family bank? I have never heard of that. Let me do some research
What is going to happen when I resigned from work or been dismissed
am I going to withdraw all my pension fund?
You will get one third and the other 2 thirds only on retirement. I stand under correction but if the amount is under R250k you will be able to withdraw it all.
Does this apply to us people who were retrenched and whose RAs are now paid up meaning we no longer contribute
The reform takes place 1st September 2024. If you are no longer contributing to a fund then it won’t apply to you. But essentially if you wanted to withdraw then monies from your existing RA can be used to seed the savings component. Only 10% or up to R30K
@@FinancialBunny thank you very much for the clarity and enlightenment
@@FinancialBunnyDoes the extension to 1 September mean that anyone retiring before then will still fall under the old rules? Ie. They can get all their money subject to tax? How about GEPF? Please talk about this as this is most on people's minds.
You can only withdraw 10% of 1/3 of your funds, not 10% of the whole amount. Please update accordingly.
Please explain further. My understanding is that 10% and up to R30K of your existing funds will be seeded into your savings component and that’s what you can withdraw
@@FinancialBunny let's say the total funds are R300k, you'll only be able to withdraw 10k (10 % of a 3rd of the whole ie 300k)
@@penuellmatlala321 I don’t think that is accurate. If your current fund has R300K, only 10% or up to R30K of it will be used to fund the savings component. That’s the amount you can withdraw and you must have a min of R2000. That’s my understanding
@@FinancialBunny Hi , I think the 'Vested ' portion needs more exploration here. Is it correct to say that the vested pot, is the ENTIRE funds existing on September 01, which then 'seeds' the Savings pot ? Hence , 10% up to a max of R30 000 of the 'vested' pot goes into savings. My understanding is that apart from this, nothing in the vested pot is subject to one thirds. Please explain what happens to the vested pot on resignation? Is it fully accessible subject to tax? What happens upon retirement? The same?
its clear but painful because i dont see how it is helping us being taxed twice
Hi guys now it's change the gvt said no one will widraw the pension.its shocking
What if I want to immigrate, can I take my pension that was accumulated before 1 September
I stand to be corrected but I heard that you will have to wait 5years to get your money (5yrs from the effective date of this 3 pot joke)
Taxation is there to provide money for grants/dole for those who didnt or who cant provide for pension funds .Dammed if you do ,dammed if dont? Wish i invested my money where i get income from. Will still be paying tax anyway
There is no win for people who plan financially for the future. No govt dangles a big enough carrot
They said this is done to assist people with their debts. I have my doubts. You have a government here that likes to play around with people.
Why not 30%
A good thing but what is questionable is this thing of tax. Indeed the money is already taxed and now when you take it is also subject to tax😭😭😭
The money isn’t taxed remember your retirement fund contribution happens before tax
I see no benefit in exploring this. It seems i might just be worse off than when I started, let me continue graveling on this, i have a son to think about, i cannot afford to make decisions that might create a challenge for him going into the future, i cannot afford to be a liability to him.
You know whr the danger is?😅
This is veeery tricky 😢 yoh more financial or debt traps.
30k nowadays is like 20cent so NOPE!
unless u really have emergency.
I would take the 30k and start up and emergency account😅,I wonder if that would be smart orrrr??🤷🏽♀️
Don't forget it's R30k minus tax at at nominal rate.. If you pay 25% tax , then enjoy your R22 500!
The government is the main beneficiary of our pensions. 45% tax on lump sums plus 15 percent vat when you start using that money means that 60% of all that money will go to tax. You will only use 40% of all your lump sum wham you resign or retire.
They certainly want to make up for the serviced debt since it's through the roof Ramophosa and his fincial team is not make sure this is a clear theft of funds.
If you have an RA and Pension fund can you withdraw from both policies?
No, RA only allows you to withdraw at your retirement age of which is 55yrs, but Pension fund will allow you to do those withdrawal's for two pot system, consider the tax as this lady says.
@lindokuhlemadonsela917 thank you
@@lindokuhlemadonsela917 You are incorrect you will be able to wihtdraw from your annuities also.