Cost of two-pot system set to increase significantly
The Financial Sector Conduct Authority expects the cost of implementing the two-pot retirement system to increase by R300 million annually.
Since it came into effect in September, the cost has reached R1.6 billion.
It includes expenses for additional staff, communication efforts, and new call centres.
Presenting to Parliament’s Standing Committee on Finance, the Authority's Deputy Commissioner, Astrid Ludin, highlighted that most costs stemmed from system changes and member communication to support the new system.
"So, the cost of implementing most of that has come from system changes. You can also see additional costs around additional staff for queries. This is not just a once-off cost; annually, the cost will increase by about R300 million."
