According to the Financial Services Committee Alex Foreps, three -quarters of its pension funds wanted to withdraw money from their savings components, which highlight their significant financial responsibilities.
On Tuesday, the AlexPurps released the statistics of the two Pot Pension System from its implementation date from September 1, 2024, 2024. The information in the survey is based on 8 200 members’ responses and data analysis of more than one million members.
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Under the two Pot regime, the contributions of the pension fund have been divided into two components since the beginning of September 2024: one -third of their pension savings (accessible once a year), and two -thirds of the pension component must be preserved and must be annually after retirement.
(The contributions of pension fund members before September 1 were assigned to a own pot with contributions until August 31, 2024.)
Withdrawal blocks
Excess Latest Statistics More than 2.4 million South African people from the South African Revenue Service (SARS) have applied for refunding from their storage tanks, with payment exceeded R43 billion.
According to AlexPs, by January 30, 2025, the number of withdrawals submitted to the fund has exceeded 370 000 – which pays more than Rs 7 billion.
“The high level of claims highlights the immediate financial requirements of members,” it says.
Overall, 59% of the claims were from members with financial credits under R250 000 and 94% of those who earned less than R550 000 per year.
“(It) Financial requirements often prove that the benefits of protecting savings for pension.”
Ask: Returning two pot without moving the needle
Read: Two pot: ‘SARS Take All’ says many claimers say
Claims to a department
Finance members submitted withdrawal requests in all sectors with the following delivery:
- 24%from wholesale and retail trade;
- 10%from the mine;
- 9%from production;
- 2%from professional and business services;
- Other fields – 2% to 8%.
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Despite the high claims, the AlexPs believes that the two pot system with short -term financial requirements “balance” the long -term savings.
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“Predictions indicate that the new members under this system can improve two and a half to the new members by allowing you to access a portion of savings for financial needs while protecting the rest for pension.”
Read: Two pot: Be sure to have your investment strategy
Under the two Pot system, the pension fund members who resign from their employers are no longer allowed to evacuate their pension. They can only access one -third – from storage components.
According to the AlexPurps survey, 47% of all members are planning to claim in the future, and 34% of the previous claimers would like to re -claim.
Of those who do not give the initial claim, 33% are not planning to claim, and 13% consider it.
The use of storage
A total of 80% of the claimers used their withdrawal for credit repayment and essential living expenses. Of these, 50% refunded loan includes 30% essential expenses.
Other applications include large procurement (13%) and financial investments, home improvements, medical bills, educational and vehicle maintenance (7%).
According to AlexPs, the inventions indicate that the members are prioritizing financial stability when they approach their savings.
“In this course, credit solutions and reward programs may provide additional value to members and help them manage their funds better when protecting long -term savings.”
Read: Want to use your pension savings to pay off the loan?
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