Old Mutual has processed over 200,000 claims totaling R2.3 billion since the introduction of the two-pot retirement system on September 1, 2024. The group reported receiving 226,000 claims, with an impressive average of about 3,200 claims submitted daily via its WhatsApp channel.
The two-pot system allows members to access one-third of their retirement savings annually, while the remaining two-thirds must be preserved for retirement. Since its launch, there has been a significant influx of claims from members eager to withdraw portions of their savings.
According to the South African Revenue Service (SARS), R21 billion has been paid out in total two-pot claims as of October 11. A prior Old Mutual survey indicated that around 60% of its members intended to access funds from their savings pots.
Michelle Acton, Old Mutual’s retirement reform executive, emphasized the importance of efficiently managing the high volume of claims and noted that prompt tax directives from SARS have minimized delays. Members must have at least R2,000 in their savings pot to withdraw.
Although specific usage data is unavailable, previous insights suggest funds may be directed towards debt repayment (60%), emergencies (23%), and medical expenses (4%). Concerns arise regarding the age group of 40 to 49, which represents a significant portion of those withdrawing funds, potentially impacting their long-term retirement savings.