Alexforbes has recorded a sharp increase in members accessing their savings pot during the first week of the new tax year under South Africa’s two-pot retirement system.
Image: Sora
Financial services provider Alexander Forbes says that thousands of South Africans have rushed to access their retirement savings in the first week of the new tax year.
This comes despite experts warning that repeated withdrawals from the savings pot could undermine long-term retirement income and reduce the benefits the two-pot system is designed to provide.
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. It was introduced in September 2024 under the Revenue Laws Amendment Bill, giving members more flexibility to manage short-term financial pressures while still preserving the bulk of their retirement funds.
The company said more than 140,000 claims were submitted during the first week of March, with approximately 84,000 already paid.
"Alexforbes has recorded a sharp increase in members accessing their savings pot during the first week of the new tax year under South Africa’s two-pot retirement system," Alexander Forbes said.
"More than 140,000 claims were received during the first week of March, with approximately 84,000 already paid. The first claim was submitted at 00:01 on 1 March, underscoring the immediate demand for access to savings".
The company also revealed that most of the activity was driven through its AF Connect digital platform, which recorded more than 1.3 million logins during the same period.
“The early response to the new tax year highlights that many members require prompt access to their savings,” said Vickie Lange, Head of Solutions Enhancement at Alexforbes. “It also demonstrates the importance of reliable digital systems that can process high volumes of claims quickly and accurately.”
"The organisation has also increased operational capacity to manage higher claim volumes and continues to monitor processing times to ensure accuracy and compliance. Members are reminded that savings pot withdrawals are subject to tax and will reduce their retirement savings".
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