Adapted from an original article by Charles Savage, first published on Currency News.
- Since the two-pot retirement system launched in September 2024, most South Africans with access to a savings pot have chosen not to withdraw from it.
- The reason may come down to one thing: when people understand what a decision will cost them in the long run, they tend to make better choices.
When South Africa introduced the two-pot retirement system, the fear was that people would empty their savings the moment they could.
Millions of South Africans are under real financial pressure. The temptation to access money sitting in a retirement fund seemed obvious.
But three years of data tells a different story.
According to a 2025 survey by financial services company Sanlam, around 64% of retirement fund members nationally have not withdrawn from their savings pot since the system launched. At some retirement platforms, that number is even higher — closer to 81%.
The people who are holding back are not necessarily the ones with the most money. They are the ones who can clearly see what a withdrawal will cost them later.
Consider this: taking out R20,000 at age 40 could mean having R216,000 less when you retire at 65, assuming your money grows at 10% a year. That is not a small number. And for many people, seeing that figure changes the decision entirely.
This is not about telling people never to touch their savings. The two-pot system exists precisely because life happens — unexpected bills, family emergencies, months when there is simply not enough. Accessing your savings pot when you genuinely need it is what it is there for.
The point is that understanding the real cost of that decision matters. When people have clear information, they tend to use it.
For South Africans who do not yet have a formal retirement fund, the lesson still applies. Every financial decision — whether it is a loan, a stokvel withdrawal, or a savings account you dip into — has a future cost that is bigger than it looks today. Money left alone grows. Money touched often, doesn’t.
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This article is adapted from a piece by Charles Savage, CEO of Purple Group, originally published on Currency News.
Pictured above: A man holding a wallet.
Image source: Pexels
