5 questions to ask yourself before you take from your two-pot savings

There has been a surge in two-pot savings withdrawals since 1 March 2026, as many attempt to keep up with life’s financial demands.

Just last week, more than 100,000 withdrawals were made at Alexander Forbes, causing users to experience technical difficulties on the website.

But an expert says drawing on your savings can negatively impact your family’s financial stability in the long run.

Old Mutual Personal Finance has urged South Africans to pause and seek professional financial advice before withdrawing any more money from the two-pot retirement fund.

Habitual Withdrawals

“When you’re pulled in many directions at once, another withdrawal can feel like the quickest solution, but good financial advice helps you step back, weigh the trade-offs and avoid undoing years of disciplined retirement planning,” said Liezl Budhram, the head of advice at Old Mutual.

Findings from a two-pot withdrawal survey conducted by Old Mutual Corporate’s Member Insights revealed that repeated withdrawals are becoming a significant behavioural risk.

“People are juggling multiple and often conflicting financial priorities, from school fees and household costs to debt repayments and family responsibilities,” Budhram says.

Nearly 80% of members who have already made one withdrawal said that they were more likely to withdraw again next year.

79% of withdrawals made by users to pay off debt are also expected to repeat this habit, signalling that withdrawals risk becoming an annual activity for many households.

“Once withdrawals become habitual, families erode the benefit the system is designed to deliver, which is why informed decisions now matter more than ever,” Budhram says.

“The reform works when the preserved portion has time to grow.”

ALSO READ: Two-pot retirement system: How to maximise your tax benefits

The two-pot system reform

According to Budhram, the two-pot System provides useful flexibility, but another withdrawal in the new financial year could set families back more than they realise.

Under the two-pot retirement system, savings are divided into three parts: a retirement pot, a savings pot, and a pot unaffected by the reform.

Meaning it holds all savings accumulated before the changes took effect in September 2024.

This is officially known as the Vested Component and can be accessed upon resignation.

You can access the savings pot only before retirement, as the rules allow only one withdrawal per tax year.

However, the retirement pot cannot be accessed until retirement and continues to grow. Liezl says that this structural preservation is expected to significantly strengthen retirement outcomes over time.

How to improve your family’s financial security

Budhram says that a professional adviser would typically explore these five questions to guide one in responsible decision-making:

What is the exact emergency or situation making this withdrawal necessary right now?
Have you explored every alternative that could possibly address this situation without using your retirement savings?
Do you understand how this withdrawal will affect your future retirement income, and have we reviewed your updated projections?
Will the after-tax amount you want to withdraw actually resolve the issue, or will you face the same problem next year?
Do you know exactly how much tax SARS will deduct and what you will receive in your bank account?

And then there was tax …

Many people are surprised by the impact of tax, which means that the net amount falls short, and the underlying problem remains.

These questions help create a detailed conversation and decision-making process to determine whether other options may be better to protect long-term well-being.

Financial advisers can assess options such as restructuring debt, adjusting budgets or negotiating payment terms.

Even modest withdrawals reduce compound growth and affect long-term income. If the root cause is not addressed, withdrawals can become a recurring pattern that drains savings.

“We encourage South Africans to pause, speak to a financial adviser and make choices that protect long-term financial security.”