The conversation around South Africa’s two-pot retirement system has largely centred on one key feature: access. Since its implementation on 1 September 2024, the ability to withdraw from the savings component of retirement funds has provided many South Africans with much-needed financial flexibility.
As the system evolves, a more nuanced picture is starting to emerge.
Data from Momentum Corporate FundsAtWork shows that while the new structure is offering support, it is also revealing how people are using this access over time. In the first week of March 2026, which coincided with the start of a new tax year withdrawal window, more than 30 500 claim requests were submitted.
A notable portion of these claims came from individuals who had already withdrawn before. This suggests that many South Africans are starting to rely on the savings pot as part of how they manage ongoing financial pressure.
The data also shows that this behaviour is more common among people between the ages of 31 and 45, as well as those earning between R90 000 and R180 000 per year.
This points to something important. Long-term financial resilience is not only about having access to funds. It is shaped by the decisions people make about when to use that access and when to preserve it.
Here are five realities of the two-pot system to consider when making that decision.
1. Distinguishing between want and need
The two-pot system was designed to reduce the need for people to resign from their jobs in order to access their retirement savings.
But access can create its own pressure. Momentum’s data shows that 71 percent of recent claims were for amounts under R10,000. These smaller withdrawals often go towards day-to-day expenses rather than resolving longer-term financial challenges.
In the moment, it can be difficult to tell the difference between what feels urgent and what is essential. Taking a step back to make that distinction can help protect long-term savings.
2. The cost is not always visible
Withdrawals from the savings pot are taxed at an individual’s marginal rate. This means that a R10,000 withdrawal may result in closer to R7,000 being received, depending on the tax bracket.
There is also a longer-term cost that is easy to overlook. Once funds are withdrawn, they no longer benefit from compound growth.
Momentum’s projections show that a 30-year-old earning R20,000 a month who withdraws their full savings component every year could see their retirement income reduced by as much as a third.
3. Repeated withdrawals can change long term outcomes
One withdrawal may feel manageable. But over time, repeated withdrawals can start to erode retirement savings in a meaningful way.
The increase in repeat claims suggests that this is becoming a pattern for many individuals, often driven by ongoing financial pressure rather than one-off events.
This highlights the importance of having other ways to manage short-term financial needs.
4. Financial resilience requires structure
In a challenging economic environment, it is understandable that people look to available savings to manage immediate demands.
But long-term resilience is usually built through structure rather than reaction.
This includes having access to an emergency fund where possible, as well as ensuring that appropriate risk cover is in place. These measures can help reduce the need to access retirement savings when unexpected expenses arise.
5. Financial advice plays a role before the decision is made
One of the most important, and often overlooked, parts of the two-pot system is the role of financial advice.
The decision to withdraw is often made under pressure. Engaging with a financial adviser before making that decision can help bring clarity.
It allows individuals to understand the full impact of withdrawing, consider alternative options, and make a more informed choice based on their broader financial position.
In some cases, accessing the savings pot may still be necessary. In others, there may be ways to manage the situation without compromising long-term outcomes.
The two-pot system provides flexibility, and that flexibility is valuable. But it also places greater responsibility on individuals to make decisions that balance immediate needs with future security.
In this context, access is only one part of the equation. How that access is used and the decisions that support it will ultimately shape long-term financial outcomes.
