Going two pot (not really)
The traditional South African retirement savings format is about to change. The implementation date of the new system is set for 1 September 2024. All current and future retirement fund members will be impacted by the change, so it is important to understand the new structure. Change is always un-settling so this article aims to simplify, clarify and, hopefully, calm your nerves.
It’s only money honey
Easy enough for Elvis to say! South Africa’s legal system has in the past few decades progressed in leaps and bounds in attempting to ensure equality between the sexes before the law. Until the introduction of the Accrual System into our marriage law, the legal position of married women in South Africa was one which would make even the most ardent modern chauvinist blush.
Accrual example
Each spouse declares a commencement value for his or her estate. On dissolution of the marriage each spouse’s estate is again valued. The spouse whose estate shows the smaller gain is given a claim against the spouse whose estate shows the greater gain, for an amount equal to one-half of the difference between the two gains or “accruals”. A simple example illustrates how this works.
