No, you can't use all your current savings to renovate. How the 2-pot retirement system will work

Since National Treasury published the draft legislation for the two-pot retirement system, one of South Africa's largest pension administrators has been fielding queries from clients who are ready to cash out what they can. Some of Alexforbes' umbrella fund members wanted to know when exactly they can access their savings to renovate their homes.

Treasury published the 2022 Draft Revenue Laws Amendment Bill this past weekend, making way for the establishment of the so-called two-pot retirement system. The amendments show that the system – which will divide one-third of retirement funds members' money towards a savings pot and two-thirds towards a retirement pot – will come into effect on 1 March next year.

Some industry members estimated it would probably take up to 2024 to get the system in place, but Treasury wants the change to take effect sooner rather than later.