Over one million savings pot claims processed | How cash-strapped South Africans are trying to stay afloat

Alexforbes has processed and paid out over one million savings pot withdrawal claims since the launch of South Africa’s innovative two-pot retirement system on 1 September 2024.

Since the system’s inception, the numbers tell a compelling story. Each withdrawal claim has averaged over R14,000, with an impressive payment turnaround time of just five business days.

Moreover, Alexforbes has efficiently remitted more than R3.6 billion to the South African Revenue Service on behalf of its members, reflecting the system’s broader economic implications.

As the 2026 tax year progresses, demand remains strong. From the start of the new tax year to 27 March 2026, Alexforbes received over 210,000 savings pot claims, mirroring the high volumes observed at the inception of the two-pot regime.

This persistent demand is notable, especially given the immediate tax implications associated with withdrawals and the long-term effects on retirement savings and investment growth.

Analysis of claims data reveals strong patterns of repeat usage among members. A staggering 67% of individuals who claimed in the 2025 tax year have filed another claim in 2026. Furthermore, 38% of claimants in 2026 submitted additional claims within the first month of the 2027 tax year.

Alarmingly, 31% of members who claimed in the 2025 tax year have made withdrawals in all three tax years to date. Such trends point to a heightened awareness of the two-pot system and a clear appetite among retirement fund members to access cash more frequently.

Vickie Lange, Head of Solutions Enhancement at Alexforbes Corporate, noted, “The two-pot system represents one of the most significant shifts in South Africa’s retirement landscape in decades. 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.”

Lange further emphasised that the two-pot system, while introducing significant administrative complexity, has not compromised service delivery, even amidst the burgeoning savings pot claims. Encouragingly, while members are actively utilising the savings pot feature, their retirement pots are quietly expanding due to the system’s design that mandates long-term preservation.

In contrast to the pre-two-pot era where many withdrew their entire retirement savings upon changing jobs, the current model promotes the sustained growth of retirement funds.

“Over time, this is expected to lead to improved retirement outcomes,” Lange observed.

“The blend of limited accessibility through the savings pot coupled with compulsory long-term savings through the retirement pot strikes a vital balance for South Africa’s retirement fund members.”

IOL