Johannesburg - Old Mutual is urging cash-strapped South Africans looking to withdraw their emergency savings to ensure their personal details are up to date as the new Two-Pot Retirement System takes effect. Today marks the fourth day since the legislation went live, and accurate information is crucial for ensuring that withdrawals are processed smoothly.

Speaking on eNCA, Michelle Acton, Retirement Reform Executive at Old Mutual, said, “If your fund administrators haven’t been in touch, it’s likely they don’t have your correct information.” She stressed how important it is to update details like cell phone numbers and ID numbers to avoid any holdups when trying to access funds.

Acton urged customers to familiarise themselves with the new system, reassuring them that their money remains invested even if they don’t cash out right away. She added that the extensive publicity surrounding the Two-Pot Retirement System has made many feel an urgency to act.  

“Remember, there’s no rush to access your savings. Your funds will keep growing if you leave them invested,” Acton explained. She also mentioned that members should be aware of the tax they’ll have to pay if they decide to withdraw, as this will affect the final amount they receive.

Acton advised that before making any moves, customers should take the time to understand how the new rules impact their retirement savings. “Educate yourself about the system so that any decisions you make are the right ones for your financial future,” she said.

The new Two-Pot retirement system offers flexibility for emergencies while safeguarding the bulk of your savings for retirement, helping members plan for a secure financial future.

While all your existing savings as of 31 August 2024 will remain in a separate ‘Vested Pot’ under the old retirement rules, from 1 September, one-third of your contributions can be accessed once a year for emergencies, while the Retirement Pot, holding the remaining two-thirds, will be preserved until retirement.

To help members and their families with immediate financial emergencies, R30,000 or 10% of their retirement savings (whichever is less) has automatically been transferred to their Savings Pot. Members of Old Mutual can WhatsApp "Hi" to 0860 933 333 to check their balance and confirm their eligibility to withdraw this money.

"By ensuring that your personal details are up to date and taking the time to understand the new rules, you can make the most of this system’s benefits," she concluded. Old Mutual clients can update their details quickly and easily by downloading the Old Mutual app or visiting the Old Mutual website at oldmutual.co.za/two-pot-retirement-system/need-to-update-your-details/ for more information. The Two-Pot Retirement Reform represents a significant change, but with the right information and careful planning, you can secure a more stable financial future.