CPD Accreditation detail

Professional Body: IOBSA

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

CPD registration number: IOB233

Course description:

The Two-Pot Retirement System represents one of the most significant changes to retirement savings in South Africa, allowing limited early access to pension funds while enforcing long-term preservation. While this reform aims to provide financial relief to struggling households, it also presents potential risks, tax implications, and long-term financial consequences that retirement fund members must carefully consider.

In this course, we explore the structure, benefits, and challenges of the two-pot system, examining how it affects retirement planning, economic stability, and personal financial decisions. You’ll gain insights into the rules of withdrawals, tax consequences, and strategies to make informed choices about your retirement savings.

The following topics will be covered in this course:

• The Two-Pot Retirement System – The structure and purpose of the new system.
• Rules and Limitations on Withdrawals – Who qualifies, how much can be withdrawn, and frequency restrictions.
• Tax Implications of Withdrawals – Understanding how withdrawals are taxed and their impact on personal finances.
• Impact on Retirement Savings – The long-term consequences of withdrawing early and strategies for preservation.
• Economic Effects of the Two-Pot System – How large-scale withdrawals could impact inflation, repo rates, and the economy.
• Common Misconceptions and Mistakes – Addressing myths and misunderstandings about the new system.
• Smart Financial Planning with the Two-Pot System – When to withdraw, when to preserve, and how to balance short-term needs with long-term security.
• Case Studies and Lessons Learned – Real-life scenarios showcasing the impact of different withdrawal strategies.
• The Role of Financial Advisors – How advisors can guide clients in making informed decisions about withdrawals and preservation.

By the end of this course, you’ll be equipped with the knowledge to navigate the Two-Pot Retirement System confidently, make informed financial decisions, and optimise your client’s retirement savings for long-term security.