Two-pot payout used wisely

WITHDRAWALS: PENSION FUND MEMBERS PUT IT TOWARDS PAYING DEBTS, BUYING USED CARS

- Ina Opperman

Pension fund members whose funds are administered by Liberty mainly used the money they withdrew from the savings pot under the two-pot retirement system to pay off debt and buy used cars.

A year after the two-pot retirement system came into effect, pension fund managers are looking at data and the lessons people can learn from how the retirement system was used, since it spans two financial years and members could withdraw twice over the past year.

Pension fund members could withdraw a portion of their savings and continue once every financial year from 1 March to 28 February.

The main question was what members did with the money.

According to John Taylor, head of investment and benefit consulting at Liberty, debt came first, followed by essential spending and asset deposits.