Two-pot retirement system | Withdrawals could amount to R80bn

JOHANNESBURG - Two-pot withdrawals will give South Africa’s economy a major boost.

Retirement administrators have been flooded with requests, with Absa saying it was expecting withdrawals to amount to nearly R80-billion in the first year.

WATCH: Two-pot retirement system | Workers dive into pension savings pots

The two-pot system means that all future savings will be split into a retirement pot that cannot be accessed until retirement and a savings pot of one-third, that can be withdrawn.

Ten percent of people’s existing retirement savings, to a maximum of R30,000 have been placed in the savings pot already.