Is it working?

The two-pot system is performing well and has been well-absorbed by the industry. It has positively addressed the longstanding tension between retirement savings preservation and member financial resilience - allowing access to a portion of savings in genuine hardship without eroding the long-term retirement pot. Withdrawal data in 2026 shows a shift from emergency-driven withdrawals towards more considered use of the savings pot. Preservation risks from over-withdrawal remain a monitored concern for FSCA.

Actions

SARS, FSCA and NT are actively monitoring withdrawal patterns and industry impact. System data are being shared at cabinet and in SARB review cycles. Preservation risks (members over-withdrawing from the savings pot) remain a monitored concern.

Are there plans?

There is continued system refinement and quarterly reviews of industry and member feedback along with audits of fund compliance are planned.

Is it on the agenda?

Yes. NT and FSCA designate this as a recurring agenda deliverable, referenced in annual administration and parliament reports.

Goals

The goal is to implement the two‑pot retirement system to improve preservation of retirement savings while still allowing limited, structured early access to a portion of accumulated funds, thereby balancing short‑term financial relief with long‑term income security.

References

• Reference Link One
• Reference Link Two
• Reference Link Three

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury Parliament South African Reserve Bank (SARB)

Is it working?

Existing provisions are functioning and delivering improving outcomes for beneficiaries. The central administrator announcement is a positive additional step, but it remains at announcement stage only. The gap between current provisions and the proposed central administrator is significant - the latter would create a qualitatively better outcome for beneficiaries. Until operational, the sector relies on individual fund compliance, which is improving but not yet consistently high across all funds.

Actions

Pension fund compliance with unclaimed benefit provisions is improving. FSCA reporting shows a reduced backlog in asset claims. The Budget announcement of a central administrator signals intent to go further with a central database and single-point claims process.

Are there plans?

Annual reporting mechanisms, stricter tracing mandates and ongoing regulatory enforcement are planned. The central administrator reform will add infrastructure once the discussion note is released and implementation begins.

Is it on the agenda?

Yes. Cabinet and FSCA prioritise unclaimed benefit compliance in governance cycles, with annual reviews assessing outcomes.

Goals

Improve South Africa's retirement savings industry - increasing member access to savings in genuine emergencies, ensuring unclaimed retirement fund benefits are identified and returned to beneficiaries. This will address long-standing fragmentation and governance weaknesses across the retirement fund sector.

References

• Reference Link One
• Reference Link Two
• Reference Link Three

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)