Financial services group Momentum Corporate says economic pressures are driving some South Africans to repeatedly withdraw from their retirement savings under the two-pot system.

The retirement savings structure allows members to access a portion of their savings without cashing out their entire pension.

The group’s Nashalin Portrag says 44% of withdrawals are used to pay debt, while 23% cover everyday living expenses and 20% go towards education.

He says the trend reflects the difficult economic realities facing households.

“I think what we’re also monitoring quite closely is a trend of people withdrawing repeatedly, so once every tax year. And I think that is just speaking to some of the financial pressures that people are facing, you know, with the current economic realities. So quite interestingly, people are not withdrawing to pay for holidays or even investments, but really to survive. So our survey has shown that around 44% of withdrawals go towards paying debt, around 23% to cover everyday living expenses, and 20% towards sort of education. So again, it’s really speaking to people withdrawing out of financial need.”

[LISTEN] Report shows South Africa’s middle-class households are the biggest withdrawers of two-pot retirement savings

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— SABC News Radio (@SABCNews_Radio) September 12, 2026

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