Alexforbes has reported a staggering 140,000 claims from members seeking access to their retirement savings pot since March 1.
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Financial services group Alexforbes says it received more than 140,000 claims from members seeking access to their savings pot during the first week of the new tax year.
It said that of the claims made approximately 84,000 already paid out. The first claim was submitted at 00:01 on 1 March 1, underscoring the immediate demand for access to savings.
The two-pot system, which was introduced in 2024, allows retirement fund members to access a limited portion of their retirement savings while preserving the remainder for retirement. The new system has seen thousands of workers withdrawing from their savings pot.
Activity has been driven largely through the AF Connect digital platform, which recorded more than 1.3 million logins during the same period.
“The early response to the new tax year highlights that many members require prompt access to their savings,” said Vickie Lange, Head of Solutions Enhancement at Alexforbes.
The two-pot system allows retirement fund members to access a limited portion of their retirement savings while preserving the remainder for retirement.
Alexforbes said it had strengthened its systems, updated member information, and expanded its digital tools to support the expected demand.
The organisation has also increased operational capacity to manage higher claim volumes and continues to monitor processing times to ensure accuracy and compliance.
It also issued a reminder that savings pot withdrawals are subject to tax and will reduce their retirement savings.
The South African Revenue Service (SARS) last year revealed that over 2.6 million taxpayers applied for tax directives to access their savings, with more than R43 billion paid out.
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