Two-pot withdrawals | Cash-strapped South Africans dip into pensions as debt chokes households

The two-pot system is a retirement savings structure that allows members to access a portion of their savings without cashing out their entire pension. Financial services provider MomentumCorporate says many South Africans are repeatedly tapping into their retirement savings under the two-pot retirement system, as financial pressures continue to affect households. The two-pot systemis a retirement savings structure that allows members to access a portion of their savings withoutcashingout their entire pension.It was introduced in September 2024 under the Revenue Laws Amendment Bill,givingmembers more flexibility to manage short-term financial pressures whilestillpreserving the bulk of their retirement funds.

is a retirement savings structure that allows members to access a portion of their savings without It was introduced in September 2024 under the Revenue Laws Amendment Bill, members more flexibility to manage short-term financial pressures while According to the company, since the opening of the latest withdrawal window onMarch 1, more than 38,000 claimswerereceived within the first eleven days, with many members making repeat withdrawals from their savings pot. According to the company, since the opening of the latest withdrawal window on received within the first eleven days, with many members making repeat withdrawals from their savings pot. The company also raised concern about a growing trend showing that members who have withdrawn once are likely to return to the system each year to access their available savings.

“Of the claims submitted since 1 March 2026, 5% are first-time claimants, 33% are making their second withdrawal, and 62% are now on their third withdrawal. The data shows that those who have accessed the system once are increasingly likely to do so annually”, Rigitté Van Zyl, Executive at FundsAtWork and Group Insurance at Momentum Corporate said.