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An elderly couple sitting on the beach enjoying their retirement years

Retirement funds trustee newsletter 2024

This year’s newsletter is about the two-pot retirement system, which encourages pre-retirement preservation and prevents members from accessing their retirement fund benefits when they leave employment. The new system also gives most retirement fund members access to a part of their retirement fund benefits in case of emergencies or financial hardship.

Remember, even though you can withdraw money from your savings component, you don’t have to. It is always best not to withdraw anything from your retirement fund so that you can retire more comfortably.

4 different sized piles of coins and a brown hessian bag with a small plant growing from each pile of coins and bag.

Keep your savings component invested

When the two-pot retirement system starts, you can withdraw from your savings pot for emergencies, but it's best to keep it invested. Those who don't withdraw will have more savings at retirement than those who do. Withdrawals are also taxed higher before retirement.

An older man with greying hair, holding a paper in front of his laptop deep in thought. He is holding his glasses in his right hand while resting them on his chin.

Two-pot retirement system FAQs

From 1 September the new 2-pot system lets you access the savings component of your retirement savings for emergencies. Future contributions split: 1/3 to savings (withdraw once a year) and 2/3 to retirement. Withdrawals are taxed and reduce your retirement funds. Consult a financial adviser before withdrawing.

A couple in their retirement years sitting with their financial adviser chatting about the two-pot retirement system.

How two-pot withdrawals will work

From 1 September the new 2-pot system lets you access the savings component of your retirement savings for emergencies. Withdrawals are taxed at your income rate and can be done once per tax year. If not used, funds grow with interest. Ensure you have a tax number and consult a financial adviser for details.

An older couple taking a walk in nature. The grandfather is holding his granddaughter on his shoulders.

Choosing your beneficiaries is important

Update your retirement fund beneficiaries, especially after major life changes. Nominate only natural persons. Provide full names, birth dates, relationships, contact details, and percentage allocations. Connect with your financial adviser for personalised retirement planning advice.

Read the rules

Momentum Wealth Retirement Annuity Fund

Momentum Wealth Pension Preservation Fund

Momentum Provident Preservation Fund

Momentum Retirement Annuity Fund

In case you missed it

Find all our previous newsletters under one, easy-to-find space, for your convenience.

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