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.
Image: Sora
Financial services provider Momentum Corporate 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 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.
According to the company, since the opening of the latest withdrawal window on March 1, more than 38,000 claims were 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The company also raised concern about a growing trend showing that members who have withdrawn once are likely to return to the system each year to access their available savings.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.
"Furthermore, among those who choose to claim, the vast majority are requesting 100% of their available savings pot. This suggests that the system is being utilised to its maximum capacity by a specific segment of the membership to manage ongoing financial requirements".
Van Zyl added that the high number of applicants reflects the financial strain many households are currently facing.
"The Momentum BMR report shows that nearly half of South African households would struggle to cover an unexpected expense without borrowing or accessing savings".
"Insights from Eighty20’s 2025 Q4 Credit Stress Report provide context for these withdrawal patterns. Over-indebtedness remains a significant challenge, with 40% of credit-active South Africans in default (three or more months in arrears) on one or more loans".
However, Van Zyl warned about the long-term implications of withdrawing from the two-pot system.
"Every R10,000 withdrawn today represents a significant reduction in future purchasing power. For younger members, in particular, it represents several times that amount in lost purchasing power at retirement.
"This is where retirement benefit counselling becomes essential, providing the necessary guidance to ensure members understand the long-term implications of their choices".
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