People who saved for their retirement at Sanlam Corporate have swamped the company with claims under the two-pot retirement system.
Three weeks after the implementation of the two-pot retirement system Sanlam says it received 66 000 claims so far valued at R1.3 billion as mostly middle-aged, middle-income pension fund members dip into their retirement savings.
“However, it is crucial to understand the long-term implications of their choices, as tapping into these savings now can impact their retirement outcomes. We know that South Africans are struggling financially given the current economic climate.”shows that the proportion of members withdrawing all or part of their savings on resignation increased from 53% in 2022 to 72% in 2024, with 54% of these members using the funds to cover living expenses and reduce or settle debt.
“Although the majority of claims are processed through our digital platforms, we received just under 900 claims requiring manual interventions. Sanlam decided to manually intervene and investigate further where bank accounts were opened within three months of the claim, as historically fraud cases have involved new bank accounts.”
She says the five common misconceptions about the two-pot retirement system are that you receive an instant payment, that you can withdraw R30 000 of your retirement savings regardless of the amount in your savings pot, that you will be able to withdraw R30 000 every year, that you will lose the money if you do not withdraw it now and that it is not taxable.
“The savings pot balance received a once-off ‘boost’, commonly referred to as seeding, from the money in the vested pot of existing retirement savings. This boost amount was calculated as 10% of the balance in the vested pot but subject to a maximum of R30 000.
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