Alexforbes says it received more than 370 000 claims for savings benefit withdrawals by the end of January. The gross claim value was R7 billion (including tax and fees), atlhough this represented only about 1.2% of retirement assets under administration.
The financial services group this week shared these and other insights drawn from a survey of members who belong to funds administered by Alexforbes. The insights are based on a survey of more than 8 200 responses and data analysis covering over one million members.
The two-pot retirement system was implemented on 1 September last year. By 30 November, more than 348 000 claims had been submitted, totalling over R6.5bn, with roughly 65% of these claims made in September. Alexforbes processed more than 97% of savings component claims were processed by the end of November, with an average turnaround of eight working days.
The survey found that 54% of respondents opted to access their savings component. Although this indicates that most respondents see the system as tool to address their immediate financial needs, a significant number (46% of respondents) are preserving their retirement savings, “indicating informed decision-making”, Alexforbes said.
Member sentiment about the system has been positive. An impressive 86% of claimants reported satisfaction with their decision to access their savings, while 96% of survey respondents understood the long-term impact and tax implications associated with their withdrawals.
Looking ahead, 47% of members intend to make future claims – with 34% of those who have already claimed planning to do so again – whereas among those who initially refrained, 33% are confident they won’t claim in the future, and 13% are still contemplating it.
The use of these withdrawals underscores the system’s dual purpose of balancing long-term savings with short-term financial needs.
A significant 80% of claimants directed their funds towards debt repayment and essential living expenses, with 50% specifically repaying debt and 30% covering vital costs. Other claimants allocated their savings for major purchases (13%) or for investments such as home improvements, medical bills, education, and vehicle maintenance (7%).
A closer look reveals that 76% of claims came from members aged 31 to 51, a demographic often balancing pressing financial responsibilities. Additionally, 59% of claims were from individuals with fund credits under R250 000, and 94% of claims originated from those earning less than R550 000, reflecting a landscape where immediate financial challenges are paramount.
Claims have been distributed across sectors as well – 24% stemmed from the wholesale and retail trade, 10% from mining, 9% from manufacturing, and 2% from professional and business services, with other industries contributing between 2% and 8%.
The survey also highlighted the critical role of workplace resources and trusted advice. Sixty percent of members accessed essential information through their workplace – primarily via Alexforbes’s My Money Matters toolkit – while half turned to professional advisory services. Media channels, including social media, provided insights for 32% of respondents, and 13% relied on advice from family and friends.
Digital engagement has been a key pillar of the system’s success. The My Money Matters toolkit garnered more than 550 000 views and 1.8 million interactions, while the AF Connect member portal recorded more than four million logins. Additionally, webinars attracted 20 000 participants, and call centres managed 259 000 calls and emails, ensuring that members received timely information and support.
Alexforbes said the two-pot system has proved to be a crucial financial resource, enabling members to manage financial challenges while preserving most of their retirement savings.
That was a good thing that we can use our monies. When is it opening again and can we take any amount this time
How much can we take out if we already took in november