SABC News reports that the Congress of South African Trade Unions (COSATU) has expressed its support for Parliament’s decision to pass the two-pot retirement system Bill, which allows for one withdrawal per year before retirement. Under the new system, South Africans will be able to access 10% of their pension savings starting from March 1, 2024. Despite National Treasury’s proposal to further postpone the implementation to 2025, the parliamentary committee responsible for the Bill decided that it should not be delayed any further.

COSATU spokesperson Matthew Parks acknowledged that there is still much work to be done before the implementation date, but he emphasised that the new system will provide much-needed relief to workers struggling with debt. “Parliament needs to pass the legislation before the recess in a few weeks’ time. The President needs to sign it, there needs to be regulations promulgated by Treasury, the South African Revenue Service (SARS) must put in some system adjustments, and the pension funds too must also put in place their work,” says Parks.

He adds that despite the tight timeline, the two-pot retirement system is a necessary and popular measure that will help preserve pension funds in the long term while providing workers with limited access to their savings when they need it most.