Alexforbes has processed over one million savings pot withdrawal claims since the launch of South Africa's two-pot retirement system, highlighting a significant shift in retirement savings behaviour and ongoing demand for accessible funds.
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Financial services group Alexforbes says it has processed and paid more than one million savings pot withdrawal claims since the launch of South Africa’s two-pot retirement system on September 1, 2024.
According to the group, the milestone reflects both the scale of demand from retirement fund members and the operational capacity required to manage sustained access to savings under the new regime.
Since implementation, the average withdrawal has exceeded R14,000, with payments typically processed within five business days. Over the same period, more than R3.6 billion has been paid to the South African Revenue Service on behalf of members, highlighting the significant tax implications linked to early withdrawals, the group says.
Alexforbes says that high levels of activity have continued into the current tax year. Between the start of the new tax year and March 27, 2026, as it received more than 210,000 savings pot claims, volumes were comparable to those recorded in September 2024 when the system was first introduced.
This sustained demand has persisted despite the immediate tax consequences of withdrawals and the longer-term impact on retirement savings and investment growth, it says.
Claims data indicate that many members are returning to access their savings pot across multiple tax years, the group says.
According to Alexforbes:
These patterns suggest a high level of awareness of the system, as well as a growing reliance on accessible retirement savings to meet short-term financial needs, it says.
“The two-pot system represents one of the most significant shifts in South Africa’s retirement landscape in decades,” says Vickie Lange, head of solutions enhancement at Alexforbes Corporate.
“From day one, our priority has been to ensure that vested, savings, and retirement pots operate reliably for members, both at scale today and sustainably into the future,” she says.
Lange says that while the introduction of the system added administrative complexity, the group has maintained service levels across its operations despite the sharp increase in claims volumes.
While the data highlights strong usage of the savings pot, the structure of the two-pot system ensures that a significant portion of retirement savings remains preserved, the group says.
Members are required to keep their retirement pot invested until retirement, a notable shift from the pre-two-pot era, when many individuals withdrew their full savings when changing jobs.
“Over time, this is expected to lead to improved retirement outcomes. The combination of limited accessibility through the savings pot and compulsory long-term accumulation through the retirement pot strikes an important balance for South Africa’s retirement fund members,” Lange says.
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