Race is on for two-pot implementation in September

Government and fund managers are in a tight race to ensure that the two-pot system is implemented in September, with cash-strapped South Africans expected to make massive withdrawals from their retirement savings. This is according to investment and insurance company Old Mutual. 

During his budget speech on Wednesday, Finance Minister Enoch Godongwana said progress had been made since last year to meet the anticipated deadline, with National Treasury confident that the system will be implemented this year.

However, government is increasingly under pressure to ensure that all legislation is promulgated before implementing the retirement system. According to the budget speech, Treasury will aim to "finalise the legislative process rapidly in the next few months to ensure that industry and regulators can prepare for implementation".