Two-pot system to help young South Africans save more than before

The two-pot retirement system, starting on 1 September, will help young South Africans save significantly more for retirement by addressing immediate financial needs while preserving long-term savings. Research by Keri-lee Edmond of Old Mutual Corporate Consultants shows young workers could save up to 9.5 times their annual salary by retirement. The system also ensures two-thirds of savings are used to purchase an annuity, providing financial security. Employers are urged to promote financial education to maximise the benefits of this new system for all employees.