Old Mutual has paid over 200 000 claims totalling R2.3 billion since the launch of the Two-Pot Retirement System on September 1, 2024. The total number of claims received is currently 226 000 and on daily bases Old Mutual receives an average of about 3 200 claims via the Old Mutual channel on WhatsApp.
“Our claims process has been functioning smoothly, and we are satisfied with the progress so far,” Old Mutual chief customer officer Michell Acton said. “Our focus has been on managing the high volume of claims carefully while ensuring they are processed efficiently. The South African Revenue Service (Sars) has been prompt in providing tax directives, and this has enabled us to handle claims with minimal delays.”
Acton advised members still considering a withdrawal to take a considered approach before accessing their retirement savings. "There is no need to rush. The system is here to stay, so take your time to assess whether a withdrawal is the right choice for your financial circumstances," she said.
"Members should also remember that any withdrawal will be taxed at their applicable marginal tax rate, and an administration fee will apply.”
To withdraw from the Two-Pot Retirement System, members must have at least R2,000 in their savings pot, sourced from a retirement fund, annuity, or preservation fund. Legacy Funds, such as some retirement annuity funds that existed before the introduction of the Two-Pot Retirement System, may be exempt from the new system.
Acton said while Old Mutual does not yet have specific data on how members are using their Two-Pot funds, the 2024 Old Mutual Savings and Investment Monitor (OMSIM) provides insights into expected spending patterns, with many members planning to use their savings for debt repayment (60%), emergencies (23%), and medical expenses (4%).
“Old Mutual encourages members to carefully review their financial situation before tapping into their emergency savings,” concludes Acton. “It’s important to speak to a financial adviser to understand the tax implications and how a withdrawal might affect long-term financial goals,” she said.
PERSONAL FINANCE