JSE-listed financial services group Alexforbes recently announced that it has processed and paid more than one million savings pot withdrawal claims since 2024, when the two-pot retirement system was introduced in South Africa.
The average amount claimed from each savings pot withdrawal is over R14,000, and the average turnaround time for each payment is five business days.
The group recorded more than R3.6 billion that was paid to the South African Revenue Service (SARS) on behalf of members.
Alexforbes revealed claims data, which indicates that many members are using the savings pot repeatedly across tax years. They reported that 67% of members who claimed in the 2025 tax year also submitted claims in 2026.
Additionally, they revealed 38% of members who claimed in the 2026 tax year have already submitted claims in the first month of the 2027 tax year.
More data suggests that 31% of members who submitted claims in the 2025 tax year have made withdrawals in the past three years.
The group said the trends highlight a strong awareness and understanding of the two-pot system by members, which shows an increase in retirement fund members wishing to access cash regularly.
“The two‑pot system represents one of the most significant shifts in South Africa’s retirement landscape in decades,” said Alexforbes Corporate Head of Solutions Enhancement Vickie Lange.
“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 said that although Alexforbes had introduced administrative complexity, it also maintained service levels across the business in spite of the increased claims of savings pots.
Retirement savings pots are growing, as members are required to maintain their retirement pots for the long term.
Lange said this is different from the previous system before the two-pot, where members had withdrawn their full retirement savings when changing jobs.
“Over time, this is expected to lead to improved retirement outcomes,” Lange said.
“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,” she said.
Alexforbes savings pots
In September 2024, Alexforbes implemented a two-pot retirement fund system.
“If you were in a provident fund and 55 or older on 1 March 2021, and have stayed in the same provident fund since then, you have special options,” the group said.
The group provided assistance with understanding the change through the following options:
- Access to financial advisors for personal guidance.
- Retirement seminars for expert advice as you approach and enter retirement.
- An online hub with detailed information about the two-pot system and your options.
South African members had a year to join the two-pot system, between September 2024 and September 2025.
If a person chose to opt in to the system, future contributions would be divided between a savings pot and a retirement pot, with current funds remaining in the vested pot.
The two options were recorded as follows by Alexforbes:
Option 1: Don’t Opt-In
(Stay the Same)
- If you don’t opt in, nothing changes.
Option 2: Opt-In
(Two-Pot System Applies)
- A portion of your vested funds (seed capital) will move to the savings pot.
- Seed capital is 10% of your fund credit (max R30 000), calculated at 31 August 2024.
- You can withdraw from your savings pot once every tax year (minimum R2,000). Taxes and fees apply, and withdrawals reduce the cash amount available on your retirement.
If a person opted in to the two-pot system, two-thirds (67%) of new savings would go to the retirement pot, while one-third (33%) of new savings would go to the savings pot.
