As South Africa’s two-pot retirement system was introduced in 2024, the country has been taking steps to help individuals better manage their retirement savings while providing easier access to financial information. Although the two-pot system itself doesn’t currently have a dedicated, government-endorsed app, many retirement fund administrators and financial services providers are adapting their platforms to support this system. These apps allow members to track their retirement savings, make informed decisions about their finances, and withdraw funds from their Savings Pot when needed.

In this article, we’ll explore:

• What apps related to the two-pot system offer
• The key features and functionalities of these apps
• Where you can download them
• The role of financial institutions in implementing the two-pot system

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What Does the App for the Two-Pot System Do?

While there is no single, official “Two-Pot System” app, most financial institutions, retirement fund providers, and pension administrators offer digital platforms, often in the form of mobile apps, that incorporate the two-pot system features into their broader retirement services.

These apps are designed to simplify the management of retirement savings, providing users with detailed access to both their Retirement Pot and Savings Pot. Here’s what you can typically expect these apps to do:

1. Track Contributions:

• Users can track contributions made to both the Retirement Pot (two-thirds of savings) and the Savings Pot (one-third of savings).
• Apps provide real-time information on the balance of both pots, showing users how their savings grow over time.

1. View Fund Performance:

• Many apps allow users to monitor the performance of the underlying investments in their retirement fund.
• Users can review reports and performance summaries to see how their savings are being invested and whether they are meeting their long-term goals.

1. Withdraw from the Savings Pot:

• The app facilitates withdrawals from the Savings Pot for emergencies or other financial needs, subject to the conditions of the two-pot system.
• Users can see how much of their Savings Pot is available for withdrawal and apply directly through the app.
• Some apps allow users to calculate the tax implications of these withdrawals and preview the amount they would receive after taxes.

1. Simulate Retirement Scenarios:

• Many of these apps offer retirement planning tools, allowing users to simulate different retirement scenarios.
• Users can see how changing their contribution levels, or making withdrawals, will impact their future retirement income.

1. Manage Contributions:

• Users can adjust their contribution levels directly through the app, ensuring they are saving at a rate that suits their financial situation.
• Apps often allow for setting up automatic increases in contributions as salaries rise over time, ensuring that retirement savings keep pace with inflation.

1. Notifications and Alerts:

• Apps notify users of important updates, such as changes in tax legislation or alerts about the status of their Savings Pot withdrawals.
• Regular reminders encourage users to review their retirement fund statements and keep their contributions on track.

1. Secure Access:

• These apps use secure authentication methods, such as biometrics (fingerprint or face recognition) or multi-factor authentication, to ensure that users’ retirement savings and personal information are protected.

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Key Features and Functionalities of the Two-Pot System-Related Apps

1. Balance Overview

• Get a clear snapshot of how much is in your Retirement Pot and Savings Pot.
• See your total retirement savings balance and recent contributions.

2. Fund Performance Tracking

• Monitor the performance of the investments that make up your retirement fund.
• View historical returns and projections for your savings.

3. Withdrawal Capabilities

• Apply for withdrawals from the Savings Pot through the app, ensuring easy access during times of financial need.
• Calculate the tax implications of withdrawals in advance.

4. Contribution Adjustments

• Adjust the percentage of your income that goes into your retirement savings.
• Set up automatic escalations of contributions based on salary increases.

5. Interactive Retirement Planning Tools

• Use calculators and simulation tools to project your future retirement income based on current savings and contribution levels.

6. Real-Time Notifications

• Receive alerts on fund performance, legislative changes, or contribution deadlines.

7. Secure Login and Data Protection

• Ensure that your personal and financial information is secure through encrypted data transmission and secure login methods.

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Where Can You Download These Apps?

Most retirement fund administrators and financial service providers in South Africa that manage pension, provident, or retirement annuity funds have apps that integrate the two-pot system’s features. You can typically download these apps from:

1. Google Play Store for Android devices.
2. Apple App Store for iOS devices.

Here are some financial service providers that offer these apps with two-pot system integration:

• Old Mutual: Old Mutual’s MyPortfolio app allows users to track their retirement savings, make contributions, and manage withdrawals.
• Available on: Google Play Store | Apple App Store
• Sanlam: Sanlam’s My Retirement app enables members to view and manage their retirement savings, including the new two-pot system.
• Available on: Google Play Store | Apple App Store
• Alexander Forbes: Their AF Online app offers access to retirement fund information, withdrawal options, and tax calculators for Savings Pot withdrawals.
• Available on: Google Play Store | Apple App Store
• Momentum: Momentum’s My Retirement App lets users check their balance, make withdrawals from the Savings Pot, and monitor fund performance.
• Available on: Google Play Store | Apple App Store
• Liberty: Liberty’s MyLiberty app provides retirement fund management services, including access to the two-pot system.
• Available on: Google Play Store | Apple App Store

If your retirement fund is managed by a different provider, it is best to check with your fund administrator if they offer an app that integrates the two-pot system.

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The Role of Financial Institutions in Implementing the Two-Pot System

Financial institutions such as pension funds, provident funds, and retirement annuity administrators play a critical role in implementing the two-pot system. They are responsible for:

• Allocating Contributions: These institutions ensure that your retirement contributions are properly split between the Retirement Pot and the Savings Pot.
• Facilitating Withdrawals: They manage and process withdrawal requests from the Savings Pot in accordance with the rules of the two-pot system.
• Providing Fund Performance Information: They provide detailed fund performance reports to help users track the growth of their retirement savings.

Through their apps and online platforms, these institutions help users easily access the two-pot system features, making it more convenient for members to manage their retirement funds.

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Conclusion

While South Africa’s two-pot retirement system does not have a single, government-sponsored app, many financial institutions have adapted their digital platforms to include the system’s functionality. These apps offer a wide range of features, from tracking retirement savings and fund performance to allowing withdrawals from the Savings Pot. You can download these apps from the Google Play Store or Apple App Store, depending on your retirement fund administrator.

As the two-pot system evolves, more retirement fund administrators are likely to incorporate additional functionalities into their apps, making it easier for members to manage their savings and plan for the future.