Two-Pot System That Became the Three Component System
Latest Update: Proposed implementation date 1 September 2024.
The rationale behind the legislation is to empower more South Africans to preserve their retirement savings when changing or leaving a job, while also allowing people to access their savings component if they experience financial hardship.
No Major Tax Hikes … Budget 2024
Finance Minister Enoch Godongwana did not announce any major tax increases.
Taxation:
- No major changes occurred, VAT and income taxes were not hiked.
- No increase in the fuel levy and Road Accident Fund Levy.
- There was the normal rise in taxes for certain types of alcohol and tobacco products.
The two-pot system for retirement funds to launch in September 2024 (click here to see article)
Government reduced it real GDP growth forecast for 2023 to 0.65%.
2024 growth estimates increased to 1.3% from 1%.
Large US Tech Shares Drove Global Equity Returns in 2023
Source: PSG Asset Management
Asset Class Returns 2022 & 2023
Source: PSG Asset Management
Rugby World Cup Fever…
In the News: The Rand
The Rand has been trading at its most sustained period trading below 18 USD/ZAR since April 2023.
- A pick-up in global risk appetite has seen the Rand recover against most major currencies and outperforming its emerging market peers.
- The main reason behind the change in sentiment has been signs of global inflation cooling down, increasing hopes that the end of the Central Bank tightening cycle really is now in sight.
Source: Currency Partners