More than 60% of people who submitted claims from their retirement savings are withdrawing for the third time.

This data from Momentum Corporate was recorded from March 1, when the third withdrawal window opened.

Rigitté van Zyl, an executive at Momentum Corporate’s FundsAtWork and Group Insurance, says the data also shows that 33% of people who submitted claims were withdrawing for the second time, while first-time withdrawals stood at 5%.

Sanlam Corporate data also shows that 50% of South Africans are making full withdrawals from their retirement savings when changing jobs, up sharply from 37% just two years ago.

“Since March 1, Sanlam has also observed a spike in withdrawals from the savings component from employer-sponsored retirement.

“Increasing indebtedness and excessive online gambling are creating additional challenges for households. These behaviours have a more profound impact on long-term wealth than any quarterly GDP figure or interest rate cut,” says Sanlam Corporate head of investments John Anderson.

Early withdrawals under the new two-pot system are eroding long-term financial security in ways no market rally can fix, he says.

“These behaviours could push many South Africans’ affordable retirement age beyond 80, despite stronger market performance in 2025,” he said.

Van Zyl says the data highlights the economic pressures on workers.

“The data shows that those who have accessed the system once are increasingly likely to do so annually. Furthermore, among those who choose to claim, the vast majority are requesting 100% of their available savings pot. This suggests that the system is being utilised to its maximum capacity by a specific segment of the membership to manage ongoing financial requirements,” said Van Zyl.

These behaviours could push many South Africans’ affordable retirement age beyond 80, despite stronger market performance in 2025.

—  Sanlam Corporate head of investments, John Anderson

“Despite the frequency of repeat claims, it’s important to note the impact on the broader retirement ecosystem. While a cumulative 33.7% of the FundsAtWork umbrella fund membership has submitted a savings claim since inception, the actual impact on total fund assets remains contained at 1.97%.

“In the first 11 days of March alone, 38,148 claims were received, representing 8.6% of the membership. While the average claim value has fluctuated — from R12,666 in September 2024 to R9,290 in March 202 — the high volume of sub-R10,000 claims (71% of the total) implies that these funds are primarily used for modest, short-term liquidity needs,” said Van Zyl.

She says there is financial pressure.

“As economic pressures persist, the tension between immediate relief and long-term security remains a critical focal point for the industry. A deeper analysis of the data from the first week of March 2026 suggests a distinct pattern in member behaviour. Rather than a broad-based surge across the entire membership, we are seeing a concentrated trend among those who have previously accessed the system.

“The Momentum BMR report shows that nearly half of South African households would struggle to cover an unexpected expense without borrowing or accessing savings. Insights from Eighty20’s 2025 Q4 Credit Stress Report provide context for these withdrawal patterns.

“Over-indebtedness remains a significant challenge, with 40% of credit-active South Africans in default (three or more months in arrears) on one or more loans.

“The report notes a R12bn increase in overdue balances in the final quarter of 2025. While the two-pot system has helped many to manage these pressures, the rapid growth in debt, particularly in home loans and vehicle finance, highlights a widening gap for many households.”

Van Zyl says credit stress no longer affects only lower-income earners.

“Comfortable retirees and high-income households are also showing increased default rates, suggesting that financial pressure is permeating all tiers of the economy. One of the biggest successes of the two-pot reform has been the seamless integration of technology.

“Digital adoption is nearing 100%, with 98% of claims in the first week of March 2026 submitted via digital channels and processed through straight-through processing. This efficiency allowed 88.6% of valid claims to be paid within the first week of the month.”

Anderson says the past decade has been “defined by survival” for many.

“Rising living costs and debt forced difficult trade-offs. When school fees or bond installments are past due, preserving retirement savings can feel like a luxury. Most people who cash out aren’t careless; they are responding to genuine financial strain,” says Anderson.

“However, repeated withdrawals come at a ‘behavioural tax’ that no market can outrun. Every time savings are accessed early, the engine of compound growth is dismantled. This doesn’t just shorten the runway to retirement; it steepens the climb required in the final years.

“Economic stability provides the breathing room to change this, but it cannot rebuild depleted capital on its own. We need a fundamental shift from reactive survival to proactive preservation,” said Anderson.