Financial services confirm high interest in two-pot system
Some pension fund administrators say they've already seen a high level of client interest in the two-pot retirement system.
The new system, which allows South Africans to access a portion of their pension funds before retirement, came into effect on Sunday.
In a statement, Old Mutual said it's still in its first phase of the two-pot system rollout. This allows customers to view their pot balances and obtain quotes, so no withdrawal applications have been accepted yet.
The retirement administrator says it's received a high level of enquiries, with over 190,000 users checking their balances and getting quotes so far.
Old Mutual says it expects a significant increase in withdrawal applications when Phase two begins at the end of the September. It's projected over 600,000 applications for 2024.
READ: EXPLAINER: Economist unpacks imminent two-pot retirement system
Speaking to Newswatch, Sanlam confirmed that many its clients have also begun enquiring about pension fund withdrawals.
It says their WhatsApp line alone recorded more than 84,000 messages this week. On the first day alone, its call centre processed just over five and a half thousand applications.
In statement, Momentum said it's seen a steady flow of application since Sunday. Less than one percent of its eligible clients have opted to withdraw so far. The retirement administrator said it's already begun paying some of its clients with the process understood to take place between two and twenty days.
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