Johannesburg - A withdrawal from retirement savings within the newly implemented Two-Pot Retirement System often signals a turning point in a customer's financial journey, whether due to debt, an unexpected expense, job loss, or significant lifestyle change. However, this moment does not need to be seen purely as a setback, says Henri Le Grange, Certified Financial Planner® at Old Mutual Personal Finance.

Le Grange believes it presents an opportunity for financial advisers to step in, reassess the customer's financial goals, and craft a fresh strategy tailored to their new reality. "This shift is not just about mitigating loss but about aligning the customer's current situation with their future aspirations."

Under the Two-Pot Retirement System, customers have the ability to access a portion of their retirement savings before retirement. "Advisers must approach this situation with empathy and a forward-looking mindset, helping the customer reassess priorities and adjust their financial plans to accommodate immediate needs while keeping long-term goals in sight."

Le Grange emphasises the importance of understanding the reason for the withdrawal, which requires trust. He states, "Clear communication and consistent engagement are vital when customers face significant life events. This guides the adviser in recalibrating their financial plan to ensure that the customer's immediate and long-term objectives are met."

Whether the withdrawal is driven by an emergency or a lifestyle change, advisers must adjust the customer's investment portfolio accordingly. This may involve moving towards lower-risk investments or rebalancing asset allocation to maintain growth.

Flexibility and regular engagement are key in helping customers manage such transitions. "Regular check-ins after a withdrawal are essential. These conversations allow us to continuously update the financial plan to accommodate life's changes and ensure customers remain on track," says Le Grange. "By assessing the customer's financial landscape, we can make strategic adjustments, such as reallocating assets or focusing on liquidity, to strengthen their financial resilience."

While a withdrawal may seem like a setback, with proper guidance, it can become a stepping stone towards financial resilience. Le Grange concludes, "Building and maintaining trust during these transitions is critical. Customers need to feel supported and reassured that their adviser is working in their best interest."