The survey also found that 43% of respondents noted that the average age of members making withdrawals is between 30 and 40 years old, which suggests that mid-career individuals, who are often under financial pressure or facing changing life circumstances, are more likely to use the savings withdrawal option. While the system offers flexibility, experts warn that early withdrawals can destroy long-term retirement capital, making effective communication crucial to prevent irreversible damage to financial security.
Meanwhile, as the new tax year begins in March 2026, NMG Benefits reported an increase in withdrawal activity. Since the launch of the system, the company has processed 113,640 savings withdrawal applications, of which 13,555 were submitted in the first two weeks of March alone. To date, R1,060,513,746 has been paid to members.
Sipamandla Buthelezi, COO of NMG Benefits and executive head of the platform, says this trend reflects both financial realities and the growing acceptance of digital platforms. “As we start the new financial year in South Africa, we are seeing members accessing their savings pot earlier than in previous years. While the two-pot retirement system provides valuable flexibility at times of financial stress, it is important for members to remember that these withdrawals come directly from their long-term retirement savings,” he explains.
Digital channels have played a central role in this progress. Over 93% of withdrawal requests as of March 2026 were processed through NMG's WhatsApp-based functionality, which includes verification checks, automated processing, and real-time notifications. “Digital engagement has been vital in allowing us to manage these volumes efficiently,” says Buthelezi.
AlexForbes also recorded brisk activity at the start of the tax year. More than 140,000 claims were received in the first week of March, of which about 84,000 have already been paid. The first claim was submitted at 00:01 on 1 March, emphasizing the urgency of access. Activity was largely driven through the AF Connect digital platform, which recorded more than 1.3 million visits during the same period.
“Early feedback for the new tax year highlights that many members need quick access to their savings. It also shows the importance of reliable digital systems that can process large volumes of claims quickly and accurately,” says Vicki Lang, head of solutions growth at AlexForbes.
AlexForbes says it has strengthened its systems, updated member information and expanded digital tools to meet demand. The organization says it has also increased operational capacity to manage higher claims volumes, while reminding members that withdrawals are subject to tax and will reduce retirement savings.
personal Finance
South Africa's two-pot retirement system, launched on September 1, 2024, continues to reshape the way members engage with their retirement savings, according to the latest report from PwC.
This framework allows individuals to access one-third of the contributions made after its introduction for emergencies, without resigning from their jobs. PwC says this change has had a significant impact on the superannuation industry.
“In our survey, 46% of participants indicated that less than 10% of their members used their savings benefits in the first year of implementation. By the second year, 54% of respondents reported that less than 10% of members had made withdrawals,” says Julani Basson, superannuation fund leader, PwC South Africa.