The need to settle short-term debt and paying off home or car expenses are the main reasons for accessing the 'Two-Pot' retirement system.
The need to settle short-term debt and paying off home or car expenses are the main reasons for accessing the ‘Two-Pot’ retirement system.The need to settle short-term debt and paying off home or car expenses are the main reasons for accessing the 'Two-Pot' retirement system. Image: SARS
“Responses showed that the main reason our claimants withdrew from their savings was to resolve home or car expenses . This was closely followed by a need to pay off short-term debt ,” Chennells said. Chennells explained that if claimants chose the ‘Other’ category as their ‘Two-Pot’ withdrawal reason, they were asked to give an example of what ‘Other’ meant for them.
“This isn’t really recommended as a good use of ‘Two-Pot’ savings because it does not truly classify as ‘emergency spending’. It’s still understandable, though, because South Africans who want to improve their lives are simply unable to create discretionary spending from their regular income at the moment.”was only selected as a reason for withdrawal from ‘Two-Pot’ savings by 1% of claimants suggesting very few wished to access their savings for a holiday to the beach.
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