Retirement funds trustee newsletter 2025
Planning for retirement can feel overwhelming but knowing the key parts of your fund and the choices you must make can give you confidence and control.
Whether it’s how your benefit is distributed after you pass, staying informed about the two-pot system, nominating beneficiaries, or understanding your retirement options, each step is vital to securing your future.
With the two-pot system now in effect, allowing partial access to savings, and the need to keep nominations updated, it’s essential to stay engaged. As retirement nears, you’ll choose how to access your benefits and what annuity suits your lifestyle. Speak to a financial adviser and use counselling services to make informed decisions. Planning ahead brings peace of mind.
10 things you need to know about the death claims process
When a retirement fund member dies, trustees must follow section 37C of the Pension Funds Act. They investigate dependants, nominees, and proof of dependency, then allocate benefits fairly. Each case is reviewed, and initial allocations may change with new information.
Two-pot: A year later
A year into the two-pot retirement system, members have adjusted to balancing emergency access with long-term savings. Since 1 September 2024, contributions have been split into savings and retirement pots, with a vested pot holding prior savings. Access is possible, but long-term planning is encouraged.
Why you should nominate a beneficiary
Nominating a beneficiary ensures your retirement benefit is distributed as you wish, easing the burden on loved ones. You can only nominate natural persons, so update details after significant life events. While trustees decide allocations, accurate information helps avoid delays in the claims process.
What options do you have at retirement?
At retirement, your options depend on the savings type and fund rules. You can take cash from the savings and vested pots, but only a third of the retirement pot. At least R165 000 must buy annuities – a living annuity offers flexibility, while a life annuity gives guaranteed income for life.
In case you missed it
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