Two-pot retirement system: how to resist temptation

Although fund managers were inundated with requests from pension fund members who wanted to withdraw from the savings pot of their pension funds under the two-pot retirement system, many members chose not to withdraw, but now that extra money could start burning a hole in their pockets.

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The introduction of the two-pot retirement system makes retirement planning more flexible, but it also brings a new temptation: accessing your retirement savings prematurely, says Lizl Budhram, head of advice at Old Mutual Personal Finance.

"A well-structured retirement plan must adapt to life's inevitable changes, whether it is a change in employment, a new baby, or an unexpected financial obligation without compromising our financial wellness."