The two-pot retirement savings system will split all your retirement fund contributions (after expenses) from 1 September 2024 into two notional pots.
Savings pot:
One third of your contributions will be saved in a savings pot that you can access once in a tax year.
Retirement pot:
Two-thirds of your contributions will be saved in a retirement pot that you cannot access until retirement.
The two-pot system, in fact, introduces three pots, because what you have saved when the new system comes in will be held in a third pot:
Vested pot:
This pot will hold your savings in the fund made before 1 September 2024 plus fund return on this. You will generally be able to do with the retirement savings in this pot what you could do with your retirement savings before 1 September 2024. So, for example, you can still take it in cash if you resign, are retrenched or dismissed from an employer-sponsored fund, but your savings in this pot in a retirement annuity (RA) will generally not be available until age 55.