R 355


Withdrawing from the Savings Component – blessing or curse?


Withdrawing from the Savings Component – blessing or curse logo
CPD Accreditation detail

Professional Body: IOBSA

CPD hour allocation: CPD Hours (online learning): 3 CPD hours    

CPD registration number: IOB209

Course description

From 1 September 2024, members of pension and provident funds will be able to make a withdrawal from their savings component on an annual basis. 

The two-pot retirement system aims to empower more South Africans to preserve their retirement savings when they leave a job or change employment, while enabling controlled access to these savings in times of financial hardship. 

In this, we will establish, by way of facts and case studies, whether this change in legislation is a blessing or a curse. We will enable you to advise your clients appropriately when it comes to retirement planning and withdrawals from their savings pots.   

The following topics will be covered in this course:

  • Reasons for retirement reform
  • Capital required at retirement = savings component + retirement component
  • Economic impact of annual withdrawals
  • Impact of:
    • Late start
    • Investment strategy
    • Inflation
    • Post retirement expenses
  • Case studies