Majority of two-pot withdrawals in the new tax year are repeat withdrawals.
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GUEST – Natasha Huggett-Henchie - Consulting actuary and member of the Actuarial Society of South Africa (ASSA) Retirement Matters Committee
Since the launch of South Africa’s two-pot retirement system on 1 September 2024, thousands of retirement fund members have taken advantage of the new ability to access a portion of their retirement savings in times of need. However, recent data from the Actuarial Society of South Africa (ASSA) highlights a concerning trend: the majority of withdrawals made in the early months of the 2025 tax year are repeat withdrawals. Around 75% of applicants who accessed funds in March and April 2025 were tapping into their savings pots for a second time, often withdrawing significantly smaller amounts averaging just R6,000 compared to the R20,000 average in the initial round.
Since the launch of South Africa’s two-pot retirement system on 1 September 2024, thousands of retirement fund members have taken advantage of the new ability to access a portion of their retirement savings in times of need. However, recent data from the Actuarial Society of South Africa (ASSA) highlights a concerning trend: the majority of withdrawals made in the early months of the 2025 tax year are repeat withdrawals. Around 75% of applicants who accessed funds in March and April 2025 were tapping into their savings pots for a second time, often withdrawing significantly smaller amounts averaging just R6,000 compared to the R20,000 average in the initial round.