Closure of Two-Pot Retirement System Opt-In Period

Dear Members and HR Representatives,

Effective 1 September 2024, the Two-Pot Retirement System was introduced to provide a more flexible and sustainable approach to retirement savings. Under this system, all retirement fund contributions from that date forward are split into two components:
•Savings Pot: Allows limited pre-retirement access under specified conditions.
•Retirement Pot: Preserved strictly for use at retirement.

All members younger than 55 years on 1 March 2021 were automatically enrolled in the Two-Pot System from 1 September 2024. Their contributions are now being allocated between the Savings and Retirement Pots in accordance with the legislative requirements.

All members over 55 years were not automatically included in this new system and were required to make a once-off, irrevocable decision to opt in.

This meant that:
•Members who were 55 years or older as of 1 March 2021, and
•Who were still active members of their fund as of 1 September 2024.

These members were given a 12-month window, from 1 September 2024 to 31 August 2025, to opt in to the new system.

Closure of the Opt-In Period:
Please be advised that the opt-in window officially closed on 31 August 2025.
•This was a strict, one-time opportunity as determined by legislation.
•No late opt-ins will be accepted, and no exceptions can be made under any circumstances.
•Members who did not opt in by the deadline will remain in the previous retirement structure and will not have access to the early withdrawal features provided under the Two-Pot System.

We request all HR representatives to ensure this information is shared widely within your departments and with affected employees to avoid any confusion regarding the implementation and opt-in requirements of the Two-Pot System.

Should you or your members require further clarity or assistance regarding the Two-Pot System or your retirement benefits, please do not hesitate to contact us at:

Tel: 011 578 5333
Email: Pension@akafin.co.za