Industry Updates

South Africa’s two-pot retirement system is revealing deep financial stress among members and a critical advice gap. Rising withdrawals highlight the need for timely, personalised financial guidance, as education alone proves insufficient to support better long-term decisions and protect retirement outcomes.

Section 37D of the Pension Funds Act is explained in practical terms, outlining when retirement benefits may be withheld or deducted for employer debt linked to dishonest conduct. It clarifies qualifying conduct, legal requirements, and the respective roles and responsibilities of employers, funds, trustees, and members.

Following the 2026 Budget Speech, several updated tax thresholds and limits apply to the retirement fund industry from 1 March 2026. Consultants should note the increased contribution deduction cap, higher retirement interest de minimis threshold, and revised living annuity commutation limits.

Accurate, up‑to‑date member information is essential for smooth SARS compliance and timely claim payments. Maintaining valid passports, permits and personal details prevents directive rejections, bank verification issues—helping employers protect members while reducing delays, risks and last‑minute escalations.

The 2026 National Budget introduces inflationary relief, higher retirement and savings limits, and key reforms across financial regulation, infrastructure investment and consumer protection. Sanlam Corporate unpacks the major changes affecting retirement funds, individuals and the broader financial sector, offering insights on their impact.

PCC 59 outlines FICA’s beneficial ownership requirements to combat financial crime and ensure transparency. Institutions must identify and verify individuals who ultimately own or control clients. Failure to verify may prevent relationships and trigger reporting obligations.