Only 21 percent of members eligible to claim have kept their savings pots intact since the government introduced the two-pot retirement system on September 1, 2024, news24.com reported. Old Mutual Corporate administration data covering around 800,000 employer-sponsored fund members revealed that a further 41 percent are classified as contingency withdrawers and 38 percent as serial claimers who make repeated withdrawals. The average claim sits at R11,000, with 75 percent of members selecting the withdraw-all option when accessing their funds.
Two-Pot Retirement System Withdrawal Trends and Income Bands
Discovery Corporate and Employee Benefits data shows that 58 percent of members earning less than R125,000 a year have cashed in at least once. Guy Chennells, chief commercial officer at Discovery, shared at the Institute of Retirement Funds Africa conference in Cape Town that members in their 30s account for 56 percent of these withdrawals.
Members make repeated withdrawals across successive tax years
Alexforbes data tracks the persistence of serial claimers across successive tax years. The figures show that 67 percent of members who claimed in the 2025 tax year submitted another claim in 2026. Furthermore, 38 percent of members who claimed in the 2026 tax year submitted an additional claim in the first month of the 2027 tax year, while 31 percent of 2025 claimants made withdrawals across all three tax years as of March 31, 2026.
Momentum Corporate data indicates that 52 percent of qualifying members have withdrawn funds. Nashalin Portrag, head of Momentum Corporate’s umbrella fund FundsAtWork, noted a gap between intention and reality. In 2025, 74 percent of members stated they would only access their savings for a real emergency. By 2026, however, only 48 percent of eligible members had not made a withdrawal.
Immediate financial pressures drive retirement fund withdrawals
Immediate financial pressures continue to outweigh future retirement planning across all administrator datasets. Momentum records show that 44 percent of withdrawals go toward paying off debt, 23 percent cover everyday living expenses, and 20 percent fund education. Old Mutual survey results from 35,350 members align with these findings, attributing 34 percent of withdrawals to basic living needs, 26 percent to emergencies, and 26 percent to debt repayment. Discovery data similarly shows 34 percent going to home, car, and living expenses, 22 percent to education, and 20 percent to short-term debt.
Portrag explained that rising interest rates, inflation, and existing debt have pushed people to use retirement savings to stay afloat. Old Mutual survey data corroborates this stress, noting that 45 percent of withdrawing members reported significant financial pressure and 34 percent felt financially constrained.
Impact of Withdrawals on Future Retirement Outcomes
Chennells outlined how withdrawals alter long-term outcomes for a hypothetical employee contributing seven percent from age 30 to 65. Before the two-pot system, job-change cashing at ages 36 and 41 resulted in a net replacement ratio of 16 percent. Under the new system, cashing in the savings pot annually yields an improved net replacement ratio of 39 percent, translating to a monthly pension of nearly R12,000 on a R30,000 final net salary. Resisting withdrawals entirely raises that ratio to 51 percent, providing a R15,300 monthly pension. To reach the industry-recommended 75 percent net replacement ratio, members must both preserve their savings and increase contributions to 12.5 percent.
Retirement Savings Withdrawal Frequently Asked Questions
How often can savings pot withdrawals be made?
Members can access their savings pot once each tax year, which runs from the beginning of March to the end of the following February.
What is the minimum amount required to withdraw?
Withdrawals must be for an amount greater than the minimum threshold of R2,000.
How are savings pot withdrawals taxed?
Tax is applied to any savings pot withdrawal at the member’s marginal tax rate.
What percentage of monthly contributions flows into the savings pot?
A third of every monthly retirement fund contribution is allocated to the accessible savings pot.
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