Withdrawal Benefits – Emergencies

You can withdraw the full amount in your Saving Pot in the case of emergencies, but:

• Minimum R2 000, once a tax year (1 March to 28 Feb)
  
• Any withdrawals from this pot before retirement will be taxed at your marginal rate – in other words, the same rate as your income. This withdrawal can also push you into the next tax brackets, so a portion of your withdrawal might be taxed at a higher rate.
  
• An administration fee will be deducted before it is paid to you

Click here for quick and easy ways to see your Accumulated Credit. 

While the Two-Pot legislation takes effect from 1 September 2024, members won’t be able to withdraw from their Savings Pot immediately. This is because systems will need to be updated to handle the withdrawals. Members can only start claiming from the 23rd of September via the Old Mutual WhatsApp facility.

You will need to provide:

1. Your SARS income tax reference number. If you are not registered with SARS, you will not have access to your savings.
   
2. Your banking details. It has to be your bank account, not that of someone else. This will be verified before payment can be made, to prevent fraud
   

• The administrator will conduct several checks to validate your identity and to prevent any fraudulent claims once you have submitted your claim. This will take a while.
  
  
• Only then can they submit a request to SARS for a tax directive, which could take up to 48 hours, if all your tax affairs are in order.
  
  
• The whole process could take up to 30 days (or longer) before you receive payment.
  

No, tax (at your marginal rate i.e. what your salary is taxed at), and an administration fee will be deducted. You might not get your full amount if there’s a court order against you, you owe taxes, your employer says you owe damages, you’re getting divorced, you owe maintenance, or you have a housing loan with your Fund.

Taking money out of your savings pot might seem like an easy way to solve short-term problems, but it's better to leave the money where it is. By keeping your savings invested, they can grow over time, making your retirement savings much bigger and giving you a more secure future.

Example: Let’s look at two situations:

Situation 1: Using the Savings Pot Themba, who is 40 years old, has R30 000 in his savings pot. If he decides to withdraw this amount now, he will have immediate access to R30 000, but this money will no longer be invested, meaning it won’t grow over time.

Scenario 2: Not Using the Savings Pot 

If Themba chooses not to withdraw the R30 000 and leaves it invested instead, earning on average 10% per year, by the time he reaches his retirement age of 65, that R30 000 could grow to nearly R325 000. 

R30 000 can grow to R325 000*

This big growth shows how powerful compound interest is and why it's important to keep your savings for the long term.

The difference between the two situations is clear—by not touching his savings pot, Themba ends up with a much bigger retirement fund, giving him more financial security in the future.

* This is just an example, as the final amount will depend on markets and fees and all sorts of other things

Click here for quick and easy ways to see your Accumulated Credit. 

The new Two-Pot System lets you use some of your retirement savings for emergencies, but it’s a good idea to build a separate emergency fund. This way, you can cover unexpected costs without taking money from your retirement savings, so they can keep growing.

Creating an emergency fund can be hard if you don’t have much money, but it’s still possible. Here are some simple ideas:

1. Start Small: Save just a little bit of money, like coins or small notes, whenever you can. Over time, it adds up.
   
2. Cut Back on Extras: Look at where you spend money on, things you don’t really need like snacks or drinks or caller tune subscriptions, and try to save that money instead.
3. Save Extra Money: If you get any extra money, like a gift or a small job, put it straight into your emergency fund.
4. Automate Savings: If you have a bank account, set it up so a small amount goes into your savings automatically whenever you get money.
5. Join a Savings Group or Stokvel: Some people join groups where everyone saves a little money regularly, and each member takes turns receiving the total amount.
6. Earn a Bit Extra: Find small jobs or sell things you don’t need to make extra money, and save it.
7. Make a Budget: Write down what money you have coming in and what you’re spending. This helps you see where you can save.
8. Use Money-Saving Apps: Some apps can help you save by rounding up your purchases and saving the difference. Capitec Bank, for instance, can round up to the nearest Rand and save that in a savings account or the Liberty Stash App.
9. Use Rewards Systems, such as Absa Rewards, or Capitec Live Better, where you get money back on amounts that you spend. Save this in your emergency fund.
10. Avoid Debt: Try not to borrow money, because it can make saving harder. Focus on paying off any debt you already have.
11. Look for Help: See if there are community programmes that can help you with basic needs so you can save more.
12. Grow Your Own Food: If you can, growing some of your own food can save you money on groceries.

The important thing is to be consistent. Even small amounts saved regularly can grow into a helpful emergency fund over time.

You can start claiming from 23rd September via the Old Mutual WhatsApp Facility on 0860 933 333. 

Send “Hi” on WhatsApp to 0860 933 333



The Old Mutual menu will appear. Select option 8 to access the Two-Pot content.

Withdrawals may take up to 30 days if your tax affairs are in order, and longer if they are not. The payment will be made only to your current bank account in your name. A tax number is required to make a claim, so please obtain one if you haven't already.

For claim status updates or assistance with website registration, please WhatsApp 0860 933 33