JOHANNESBURG – South African households are coming under increasing financial pressure, with many now turning to their retirement savings to stay afloat.
Early data shows a sharp rise in withdrawals from the two-pot retirement system as the new tax year began in March.
Financial journalist Maya Fisher-French has warned South Africans against rushing to access the savings component of their retirement funds.
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Fisher-French says a concerning pattern is emerging, with around 60 percent of those accessing their savings doing so repeatedly.
This raises questions about whether the funds are being used for genuine emergencies — or gradually becoming part of everyday spending.
She also cautioned that the timing of recent withdrawals could not have been worse.
Many applications were submitted in early March, coinciding with a downturn in global markets.
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“Remember the attacks on Iran — oil prices spiked, and within that first week of March, the JSE was down about 10 percent,” she said.
“This made it a particularly bad time to withdraw from your savings pot, because pension funds are invested in the stock market.”
Fisher-French reiterated that withdrawing from retirement savings should be a last resort.
“Generally, it’s not a good idea unless it’s a real emergency,” she said.