This is the third video in a four-part educational series on the two-pot retirement system for GEPF members. Watch the first video here and the second video here. This video and article look at things to consider before you withdraw your pension...
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The two-pot system will improve retirement outcomes
While there are many fears around the imminent introduction of the two-pot system for retirement funds, members of these funds will be significantly better off due to the changes. Firstly, you will have access to your retirement funds without...
Savings pot withdrawal minimum may disappoint many
With less than two months to go before the new two-pot retirement system is implemented, you may be disappointed to realise you are unable to immediately withdraw money from your savings pot. Many employees are banking on being able to withdraw...
Two-pot system: considerations for over-55s
With 100 days to go until implementation of the “two-pot system” for retirement, Keith Peter, Advice Manager at Old Mutual Personal Finance, says that the best approach is to maintain your current strategy and avoid prematurely accessing the...
Impact of the two-pot system on your preservation fund
The current draft bill does allow a savings pot component for preservation fund members. There are several steps that still need to be taken to bring the so-called “two-pot retirement system” into law. Although the National Council of Provinces...
Should I cash out my pension?
I’m thinking about resigning so I can cash out my pension and rather invest the funds myself. What are the pros and cons of doing this? Maya's Answer Some people feel more in control if they can manage their own investments, however, this is not...
Investment strategies for retirement
New actuarial research identifies how different investment strategies may prevent capital erosion in living annuities. Adopting an aggressive investment strategy in retirement seems counterintuitive. But new actuarial modelling shows that most...
Listen: Treasury explains the two-pot retirement system
On 1 March 2024 there will be a radical change affecting everyone who is a member of a retirement fund, with the implementation of what has come to be known as the “two-pot retirement system”. Update: The two-pot system will now be implemented on 1...
Two-pot retirement system: questions answered
The so-called two-pot retirement system will be implemented from 1 March 2024. There is still a lot of confusion around the system and exactly how it will work, and we are awaiting further clarity from Treasury on some of the details surrounding...
Trying to time the market is a fool’s errand
Roné Swanepoel, Business Development Manager at Morningstar South Africa, provides compelling evidence that trying to time the market invariably has disastrous results. Let’s start with a thought experiment. If you look back on your investment...
Previous Articles
Financial independence needs a plan
While financial independence is a goal many people aspire to, it means different things to different people. For some people, financial independence means having enough capital to provide an income that covers their expenses. This is the goal behind the FIRE...
Addressing the gender pension gap
South Africa’s gender pension gap sits at 26%, reflecting the average difference in retirement income between men and women. Farzana Botha, Segment Manager at Sanlam Risk and Savings, says that often, women cannot afford to retire as early or as comfortably as men....
Listen: Take this opportunity to boost your retirement income
In this podcast Maya speaks to Deane Moore, CEO of the Just Group about how to use a guaranteed annuity to boost your retirement income, even if you are already in retirement. If you have a retirement annuity or a pension fund, you should know that when you retire,...
Further clarity on the two-pot system for retirement funds
Over the last few years, National Treasury has been working on introducing the so-called two-pot system for retirement funds. Recent updates to the draft legislation are open for public comment and have provided further clarity on how the system will work and what it...
Young investors: the earlier you start, the better
Getting an early start is crucial if you want to achieve a comfortable retirement. Adriaan Pask, Chief Investment Officer at PSG Wealth shares nine rules of thumb for young investors who want to secure a strong financial future. Rule 1: Plan to reach your 100th...
GEPF targeted in disinformation campaign
Over the last month the Government Employees Pension Fund (GEPF) and its fund manager the Public Investment Corporation (PIC) have been the centre of what appears to be a disinformation campaign. This has been fueled by social media posts claiming that there is an...
Listen: Consider the post-retirement impact of your investment strategy
In this podcast, I chat to certified financial planner Wynand Gouws, wealth manager at Gradidge Mahura Investments and author of To 100 and Beyond. He argues that a retirement strategy aimed at optimising only pre-retirement tax savings is short sighted, and that not...
Video: How we sabotage our retirement
For most of us, retirement is one of our most important goals. Putting away money for our retirement is probably the biggest investment we will make in our lifetime, yet we find so many ways to sabotage our retirement goals. The most common mistake is cashing in our...
GEPF revises resignation benefit
On 1 November, the Government Employees Pension Fund (GEPF) revised its actuarial factors. This will have an impact on the resignation benefit of members, in calculation of a divorce order, or for members who exit the fund with fewer than 10 years of pensionable...
The GEPF formula for calculating payouts
The Government Employees Pension Fund (GEPF) is a defined benefit fund. This means the pension received by a member has nothing to do with the investment performance of the fund. A member's pension payout is determined according to the GEPF formula. GEPF members...