Get out of the two-pot sin bin: what ‘sinners' can do

It seems like the influx of requests for two-pot withdrawals is tapering off.

- Paul Menge

During September, the financial industry was reeling from the number of calls and e-mails to contact centres – some people were desperate to access the retirement money they're allowed to withdraw.

According to industry experts and South African Revenue Service statistics, many people battling financially earned themselves yellow cards for making withdrawals.

We are a rather small product house within the larger Momentum, and most of our clients contribute an average amount of R1 200 per month to a retirement annuity. Some supplement their savings in retirement funds at work, and some work for themselves.

We were pleasantly surprised that only around 1% of our clients made retirement savings withdrawals.

But we're worried about how many of those who did make withdrawals fell in the age group of 40 to 49 years. Almost 50% of those who withdrew fell into this category.