By Private Wealth Management
Let us explore the specific instances where individuals and funds are excluded from the new system.
Key Exclusions:
Provident Fund Members: Those aged 55+ as of 1 March 2021 who have remained in the same fund can choose whether to opt into the Two Pot System. If they do not, they can take their full Provident Fund as a lump sum at retirement but will forfeit access to a Savings Pot.
Legacy Retirement Annuity Policies: Certain older retirement annuity policies, entered into before 1 September 2024, are excluded due to their product structure, which would require redesign under the new system.
Pensioners: Individuals who have already retired and are drawing an income from their retirement fund are excluded.
Beneficiary Funds: These funds, which support beneficiaries of deceased members (often minors or those unable to manage their own affairs), are also excluded.
Unclaimed Benefit Funds: These funds hold benefits that were never claimed by the member or their beneficiaries and are excluded from the Two Pot System.
This is critical information for anyone navigating retirement planning under the new regulations. Thank you for following our series—your financial future is worth every effort.
The information shared is for information purposes only and does not constitute financial advice in any way or form.
